|It will help. You had the two routers configured for separate subnets with no routing between them. Once they're both on the same subnet wireless clients attempting to connect to router 2 will now be able to get an IP from the DHCP server in router 1. At least, I know this would work with Linksys equipment. I can't think of any reason why it shouldn't with Netgear.|
As I said before, I've never worked with Netgear equipment but the DHCP should flow through without issue. Technically, you've set router 2 up as an AP (access point) and that's how they work.
If you would like a little more info on daisy chaining routers and configuring them correctly, click on my name above and in the window that opens look for my "howto" on how to "Add a second router to your LAN"
It describes both connection methods (ie: LAN port to LAN port, or LAN port to WAN port).
However, once you've changed the LAN IP of router 2 to one within the subnet of router 1, your wireless should work.