Using a Netgear WG602 in Repeater Mode (Please Help!)

In trying to increase the signal strength to a distant machine on our
wireless network, we got another WG602 and have it set in repeater
mode. It's plugged into nothing put a power outlet. The original access
point is a mark 1, whereas the repeater is a mark 3 (WG602v3):


Rest of wired network
|
== Modem -- Router -- Switch -- WG602 )))

...

((( WG602v3 ))) ((( Remote machine

It doesn't work!

Both access points have been set up properly: they are on the same
channel, frequency, SSID, WEP settings, MAC access, etc... The v3 picks
up the access point and seems to set its own IP address (via DHCP, I
assume) appropriately. You can access the v3 from the remote machine,
but not from the main network. Vice versa, you can access the access
point from the main network, but not the remote machine.
The whole point of the exercise was to boost the signal to the remote
machine, making its connection to the Internet a little less
tempremental.

We also tried putting the v3 in bridge mode and plugging it directly
into the remote machine's NIC... Same result.

Can anyone help? Please don't tell me a v1 and a v3 are incompatible!

Thanks
Christopher Harrison