How to create WDS wireless link between two home wireless routers?

Solution 1:

Traditional "WDS" wireless links between wireless infrastructure devices require a bunch of manual setup, because the WDS-related sections of the 802.11 spec never specified an autonegotiation mechanism for WDS links.

1. Put both devices on the same channel so they can talk to each other.
2. Put the devices within range of each other.
3. In the WDS configuration of each device, put the other box's wireless MAC address (BSSID). If either device doesn't have a mode that mentions "WDS" and a place to put the other device's BSSID, then that device probably doesn't support true traditional WDS, so you'll have to figure out what kind of wireless backhaul mode it does support, and see if you can use that.
4. Set the exact same security mode and key(s) on both devices. If using WEP and the UI shows you spots for 4 keys, make sure you enter all 4 keys correctly on both devices, and the selection for which key to use as the default multicast key is the same.
5. If using WPA-PSK or WPA2-PSK (A.K.A. "WPA[2] Personal") with an 8-63 character passphrase, make sure the wireless network name (SSID) is the same on both devices, because the wireless network name is one of the things that gets hashed along with the passphrase to create the actual key. If you're using a 64 hex-digit value as your key, then you're entering your own actual key directly and not using a passphrase, so you don't have to worry about SSID hashing.
6. Make sure that other Wi-Fi/radio settings are the same for both devices.

Solution 2:

If you are about to set up WDS there are few steps to follow.

1. Your wireless router's (we will call it the Base) WAN port should be connected to internet broadband device.

2. Your broadband device should have DHCP settings on (range 192.168.A.x) with router mode on.

3. Your Base should also have DHCP server on (range 192.168.B.x) if you want your wireless devices to obtain IP address by DHCP server. Otherwise you should avoid having more then one DHCP server on the network. LAN set as static IP (range 192.168.B.1)

4. Your remote Access Point should be set as AP + WDS, where you are asked to join to already set network trough site survey page or something similar and provide SSID name of the already set wireless network, security key and MAC address of your Base Router wireless NIC. DHCP server should be set off, LAN set as static IP (range 192.168.B.2).

Notice that only one AP - not connected to LAN/WAN, should have WDS configured while other Base AP is set as AP.

That should be it, or at least what is working for me. I use PPPoE connection xDSL, LAN, WLAN and internet connection with any of these.