Using two wrt54gl's for home entertainment network?

Hey all,
1st time poster here that could use some help!  Right now I have a WRT54GL router connected to my desktop upstairs and then wirelessly to my laptop.
I just a got a new Panasonic TV, Blu Ray Player, and Xbox downstairs -- all of which I want to connect wirelessly.  Can I just get another WRT54GL router and connect all of the latter devices to it via ethernet, and then have the 2nd Linksys wirelessly connect to the 1st one upstairs wirelessly?  In other words, can I establish another wirelss hub downstairs using a 2nd WRT54GL but using the upstairs unit as the signal source?
If not, is there a better solution?  I was thinking an n router wouldn't work without me replacing my WRT54GL with another 'n' router.  But that seems expensive.  Anyways, I'm confused about the best way to hook all of these devices together.... any thoughts/guidance?  Thanks! 

Thanks guys, I really appreciate the guidance.  It's not really feasible for me to run a cable from my WRT54GL to another router/bridge downstairs.  I've been reading a little about DD-WRT and how that might offer a solution of putting one of the routers in bridge mode, allowing the two units to connect wirelessly.  Still not sure if this is feasible or not.  Can you recommend a good wireless bridge that would work with my router, one that has at least three ethernet ports?  Thanks again for all of your help!

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