Setting up a Wireless Repeater in a home network

FYI: I have a wired connection between the D-Link wap and the Netgear router.

Since your second wireless access point is already wired into the network, you really do not require a wireless repeater. IF (and only if) the second WAP (the D-Link in your installation) was not already wired in, then this WAP would act as a repeater (not the Netgear as your initial configuration).

The primary wireless router (the Netgear) could be setup as if were the sole WAP in the house: DHCP enabled and whatever "normal" wireless settings you choose.

The secondary WAP (the D-Link) should be configured as a wireless access point (which means that DHCP must be disabled on this unit). This unit's LAN port should be assigned a static IP address within the subnet but outside the DHCP allocation range. You have set it to 192.168.1.50, which is outside the Netgear's default(?) .60 to .100 range; I'm lazy and use .2. Setup its wireless with the same SSID and security configuration as the other WAP, but on a different radio channel at least 5 channel numbers different to avoid overlap.

If you encounter wireless connection issues, then the first thing to do is revert to different SSIDs, so that you can determine to which WAP you're connecting (or not). You might want to use inSSIDer to help view channel activity and signal strength at various locations within your home.

Here's a link to a guy's solution to your near identical situation. Just don't get confused when he turns off the 1st router; it's only temporary in order to access the 2nd router which initially has the same IP address.

Correction: Your WNR3500 has a different default DHCP address range from my WNR3700. Just like the second URL mentioned, you will have to exclude the D-Link's static IP address from the range of IP addresses handed out by the Netgear's DHCP. Be sure to have the wired network working as expected before troubleshooting the wireless network.