#1--probably the router is failing; unless some days there is major wireless interference.
#2--if you want to use the wireless on the modem/router and still have everything on the same LAN use the Cisco E1000 as an ethernet switch and, optionally wireless access point. If you want to go this way I can post the entire procedure (or you can find it in the Library articles of this site), but the main points are to connect the primary router to a Cisco LAN port and disable the Dhcp server of the Cisco.
#3--if I understand your question the answer is yes, you configure the wireless bridge to connect to the desired wireless network (SSID).
#2--if you want to use the wireless on the modem/router and still have everything on the same LAN use the Cisco E1000 as an ethernet switch and, optionally wireless access point. If you want to go this way I can post the entire procedure (or you can find it in the Library articles of this site), but the main points are to connect the primary router to a Cisco LAN port and disable the Dhcp server of the Cisco.
#3--if I understand your question the answer is yes, you configure the wireless bridge to connect to the desired wireless network (SSID).