Update and new questions: Looks like the thing to do is to use a router as an access point by turning off DHCP, etc.
1) If I buy a newer router that supports a usb storage device, will it still work in this configuration?
2) Is it better to have the wireless show up as a single source or have each show separately?
Intel Core i7 875
4GB (2x2GB)GSkill DDR3-1600 [F3-12800CL9D-4GBNQ]
ASUS Maximus III Formula BIOS v1202
Saphire Radeon HD5850 1GB GDDR5
2x2TB Hitachi Deskstars in RAID 1
160 GB Intel x25M Gen2 Boot Drive
Pioneer BDR-205 Blu-Ray/Multi Burner/Reader
Windows 7 Pro 64 bit