|Ah ok, just reread your first posting and I missed, that the routers are already connected together by wire.|
In that case, you're right. There is indeed no need for WDS or repeater mode.
And in that case, you simply had to connect your routers from one LAN (router 1) port to one LAN port (router 2), configure WLAN on router 2, disable DHCP on router 2, while DHCP is enabled on router 1, and you're done.
Anyway, you got it to work.
Great to hear that.