I'm wanting to install wifi in my Dad's house for when he gets a wifi Kindle.
At the moment he has a Netgear DG834 (non wifi) ADSL router. This is fine as his phone socket is next to his PC, so using a wired network isn't a problem.
I thought about replacing the DG834 with another wifi ADSL router, however that's much more expensive than just buying a wireless access point (probably another Netgear one). So my plan is to setup a network as outlined below (black = existing network, blue = planned).

My problem is that I know very little about networking.
The dg834 uses the default 192.168.0.1 address to get access to the settings. How would the wireless access point work? Would it be diven a different address by the DG834? If so, what? Would it try to give itself the same address causing a conflict?
I know it can be done, I just don't know how easy it will be to set up.
I'd apreciate any advice/comments.
Thanks in advance.