As a follow up to my previous post, I had to put the wireless card in laptop to compatibility mode (as it doesnt do promiscuous mode in winxp), which from what I have read makes it act as a Layer 3 Bridge, using a forwarding table, not a routing table (which layer 2 does).
So what the WRT54g...
I have the same setup (as robeest mentioned) with laptop acting as a wireless bridge (winXP) allowing everything on the same subnet. I just got a WRT54G assuming it would do this instead of the laptop, but after reading this forum and numerous other things it seems not :(
This is the routing...
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