No, we're talking about two very different things (opposite things, in fact), but I'm just not explaining it well..
The router will extend the wired network wirelessly, meaning that wireless devices can connect to the wired network that is plugged into the router's ethernet hub, but it won't do the same thing in the opposite direction. It won't connect to another wireless network and then give all of its wired devices access to that network. For example, plugging a laptop's ethernet port into the hub on one of those routers would not be the same as putting a WiFi card in the laptops PCMCIA port.
So, for example, I have an extensive wired network at work. Every office has at least one ethernet data port, and each of those ports is wired back to the comm room where they are all plugged into ethernet switches. If I take one of Fredster's routers and run an ethernet cable from the built-in hub to a data port on my wall, a bridge has been created. Now laptops (or desktops for that matter) that are WiFi capable can connect to the wired network as though they had a physical cable plugged into it. That is the type of bridging Fredster's router is capable of. That is the type of activity it is talking about when it says it can act as a bridge.
It cannot go in the other direction, however. It might be able to act as a repeater -- receiving the wireless signal from another access point and retransmitting it, effectively doubling the range of the other access point, and this is also sometimes called wireless bridging -- but that is still only for wireless devices. But it cannot bridge in the other direction, allowing ethernet devices to connect to a wireless network. Or, rather, it probably cannot because almost no wireless routers can do that. Once again, if it could do that, Belkin would be cannibalizing the market for their more expensive standalone ethernet bridges, which doesn't make a bit of sense from a business standpoint.
I understand exactly what you're saying, and the concept is sound. What I am saying is that you are describing features that are found in wireless ethernet bridges and almost never found in wireless routers. Perhaps it's only a matter of firmware and if Fredster can find a 3rd party hacked firmware enabling the feature he will be golden. But as it stands I'd put money on it -- no matter how long he works at it, he will have no success. His routers are not capable of that. And, for hell's sake Fredster, how valuable is your time. You can't tell me you haven't put $40 worth of work into this already and accomplished nothing but frustration. Just get yourself a wireless ethernet bridge (only one -- the other Xbox will use the existing router) and be done with it.