2Wire → 2701hg-b as a wireless network 'extender'

I have two 2wire routers - 2701hg-b and the 3600hgv. The 3600 is connected to the internet (att dsl) and allows me to use internet both wirelessly and via ethernet. lets call this network A.

In another room, I have the 2701hg-b connected (by ethernet) to my tv, bluray player and a monitor-less linux box serving media files. Lets call this network B. Network B (wireless enabled) is NOT connected to the internet. I use my laptop to connect to either wireless networks (A or B) and configure the routers.

I want to connect the two networks together (so that the linux box can use the internet, have the bluray player download disc specific content etc). I've have 2 ideas to do this, so I though I would run them by you folks and get some feedback / suggestions.

idea 1) configure 2701hg-b to 'connect' to 3600's wireless network. Conceptually, I think this should be possible, although I haven't been able to find a how-to on this.

idea 2) get a usb-dongle for the linux box and connect it to network A (3600's network). Now, run a proxy server on the linux box to distribute internet to network B (bridged on linux) ... (for this, i need to configure 2701hg as a router).

So, what do y'all think?

1) I believe that you are wanting to use the 2701 as a 'plain ol' router'. Since the 2701 does not have an EthernetWAN port and has it's own DHCP server, I don't think this would be the best option.

2) Again, this assuming the 2701 can be configured as just a router. If you turn off the DHCP functions, you could possibly be able to use it for a dumb hub but there are inexpensive (and better) options available.