Setup of Router as a Client

I am trying to setup a Gigafast WG719-CAPR Wireless G router as a
client for an X-box setup.
The router itself has a "client" setting in mode selection.
The Linksys / Sveasoft router being used as the internet transmitter is
set up in a standard ordinary fashion with the encryption off for now
for ease of setup.
The "client" sees the router - is able to connect and obtain an ip.
The router sees the client as a functioning wireless device attached
to its network.
The ethernet cable of the "client" router is plugged into the lan port
marked "1".
I suspect i have to turn off the dhcp on the "client".
Even then I am not able to functionally obtain internet.
Its a Win 98 machine.
I have tried the DNS off and on.
What other setting changes do i have to make within the router setup to
have it work.
I am assuming that once the "client" is set up on the network that by
plugging the ethernet cable from the lan into the X-box the X-box will
be able to connect online.

Another question - with the Linksys router encryption on ( 64bit) the
client obtained an ip.
I was a bit surprised
Is this standard ?
Or is this just the way the setup works in order for the 2 devices to
start to attempt to communicate to coordinate encryption verification.


Or it just the way things work