Simo606 :
If Router 1 is the router connected to the internet and you are going to connect router 2 to it, and all devices on router 1 and 2 are going to use the internet, router 1 is still going to have to process all that data so there's no real advantage.
Usually the routers are made to work efficiently for the number of ports they have and the recommended wireless hosts. In other words, your unlikely to see a 8 port router that can only process 4 ports before becoming overloaded.
I would try both configurations and see which works best for you.
Check the user manual or Google and see how many wireless hosts it can support at a time.
Well here's the thing, in Scenario 1 - the Router 1 has to deal with 5 connections (4 wireless, 1 ethernet)
In scenario 2 Router 1 only has to deal with 3 connections total. Now knowing that wireless connection decrease at a rapid rate per the # of wireless connections we can presume something like the following
300Mbps router
1 Device - 300Mbps
2 Devices - 150Mbps
3 Devices - 75 Mbps
4 Devices - 33 Mbps
5 Devices - 16 Mbps
*note 300 is optimal, you can prob reduce the speed by 15% to account for network interference/ect... but were using optimal for this example)
This means if you had 5 wireless devices each would work at 16Mbps each ideally.
If you only had 3 connections they would be 75Mbps
PC1 - 75Mbps
PC2 - 75Mbps
Router 2 - 75Mpbs
now router 2 has 3 pc's connected to it. so that 75Mpbs is /3. 75/3 = 25Mbps on each device.
PC 1 - 350% faster connection
PC 2 - 350% faster connection
PC 3/4/5 on the 2nd router is getting over 50% faster
Even if you take away 10% for a bottle neck of the second router you still get faster end speeds then having that many wireless devices. Also you get a stronger signal due to 2 routers vs 1.
Now in my personal scenario
PC: 1 (Ethernet) uses internet a ton
PC: 2 Wireless uses internet medium
PC: 3 Wireless uses internet medium
PC: 4 & 5 rarely access anything outside of the LAN.
Because of 4 & 5's scenario i wasn't counting internet just LAN speeds.
Will prob give it a try this weekend, just wanted to get some logical feedback on it before i gave it a shot.