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Keep in mind that as soon as you throw things in WDS, no matter who's equipment, things start slowing down significantly between nodes. Even if hardware says it will support 10 clients, you don't want more than 3 hops from the Internet connection, otherwise it will get to slower than dial-up speeds. Any type of interference is going to increase this problem even further.
Zyxel makes a unit that does AP+Bridge mode which might be a little more suited to this project, but the cost is higher than the Linksys equipment you're talking about using.
If you're going to change the firmware on the Linksys too, make sure that its not the type of memory flash that only stays there until the router reboots (ie power loss or something). NoCatFlash works that way, so its something to look out for.
As far as the DHCP problem, I would build some sort of database, so when someone signs on to your project, you can tell them which IP's to use. Just give everyone a different class C on a private IP.
--Rick Dobbs
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