Daisychaining Routers (& Air Display)

I'm in sort of a weird set up. I recently built an OSX desktop and would like to use my MacBook Pro as a wireless secondary monitor via Avatron's Air Display. The performance isn't as consistent as I need it to be, and sometimes it has extreme lags. I suspect that this may be in part from my two roommates who are also streaming lots of data.

To alleviate this, I just got a 300mbps wireless N Linksys to replace the older 54mpbs B/G. It made the Air Display performance noticeably better, but still occasionally suffers extreme lag.

So I'm wondering if it will be beneficial/effective to daisy chain the 300mb router to the 54mb. The 54mb will act as the main router from the modem and host my roommates' connections while I use the 300mb as a dedicated router to connect between my desktop and Macbook while still getting Internet connection. Is there any precautions or specific things I should consider before setting up the routers this way?

And if you use Air Display, please let me know if there are other factors that might be causing bad lag. Thanks!

You are wanting to you use your MBP as an access point? Depending on the amount of people connecting to you the lag that you see will only multiply. Can't really fix that unless you want to stop using your MBP so it can function soley as an access point.

No, not at all. The access points would be the two routers. One (54mb B/G) which is connected to the cable modem and the other one (300mb N) is daisychained to that router. The 300mb N would act as a dedicated access point between my desktop and laptop only, while everyone else uses the 54mb B/G.

Just use your wireless N router, no sense in trunking a router to a router that can do the same thing. The less routing the better.