Typically in a /30 subnet there is a network address, default gateway, client or node address, and broadcast address. Since the router's address is basically the route to the Internet or the default gateway, I was giving the WRT54G(x) the default gateway address. The network address is the first IP address in the subnet and therefor unusable. You are on the right track; 2 usable IP's.
If anyone can get LAN and WLAN separated, please post instructions! Thanks for the additional details, rclark and thanks to everyone else who posted details!
Maybe we can get Worldspot to create a new "How To" forum to post user written How To guides. I found it really frustrating searching and searching for the limited information on setting up WDS. I'm happy to contribute to the detailed instructions after I get everything set up next week.