Best Way to Set up Wired and Wireless with Junction Box

I have searched but not found my exact situation. I have a cable modem in a junction box in the laundry room. I have wired ethernet access in three rooms. I would like to set up a wireless network. If I use a WRTG54 wireless router inside the junction box, what kind of wireless signal would I get? This would be the easiest, but I don't know how good the signal would be with the wireless router mounted inside the box.
My second option would be to have someone wire another phone outlet somewhere in the house and use a wireless access point at that location (I already have a WAP I can use).
The third option is to use a regular router in the junction box and then use a wireless router in one of the three rooms, which would be wired to one computer and also serve as the wireless access point. Does this work?
Thanks for any assistance.

You can set-up your wrt54g router along with your modem and use an access point(wap54g) in repeater mode and use it to connect all the wireless devices across your home...

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