WRE54G version 3 uses all available DHCP connections causing all wireless connectivity to fail

I couldn't find this problem via search so i've started a new thread.  Here is my problem.
I have configured my WRE54G and everything seems to be working great, a Wireless connection that was LOW is not Excellent.
a. I can connect to my router: 192.168.0.1 (WRT54GC firmware 1.05.7)
b. I can connect to my range expander: 192.168.0.11 (I changed the IP, firmware 3.01.01)
c. The Range Expander has the same SSID as my router and has the same WEP key too.
It seems that the range expander will eventually use all of the DHCP connections that I have configured for my router to allow.
I have the DHCP lease set to 30 minutes but when i look in the DHCP client list I see clients with 2 day leases, these are all the MAC Address of the Range Expander. Currently 5 of 7 connections are the Range Expander.  Eventually it will consume all connection and I won't be able to connect.
On my wireless router I have MAC address filtering set up and only 4 MAC addresses are added to the "allow" list.
Message Edited by 221385 on 12-21-2009 07:44 PM

DHCP lease time on the router is 30 minutes.
It appears that the clients, specifically the only wireless laptop on the network, drops the connection and when it reconnects it gets a new lease and IP address.  This happens many times until all IPs are in use.  I don't know why the lap top drops the connection when the signal strength is excellent.
I have seen the MAC address of the Client in some cases but the majority are the WRE.
I've linked to some pictures of the router set up, the DHCP client list, and the basic WRE setup.  There are only 3 wireless devices in my home, 1 laptop, 2 iPhones.  I guess a neighbour could be trying to connect but I do have MAC address filtering turned on so only included MAC Addresses can connect.
I guess I could always update the firmware but I only want to do that if it will fix this issue.  I tried the live chat today but I didn't have access to my home network so there wasn't much that we could do.
Basic Router Setup
DHCP Client List
WRE Setup
Message Edited by 221385 on 12-22-2009 07:16 PM
Message Edited by 221385 on 12-22-2009 07:22 PM

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