This. Client Bridge mode is what you want, not Repeater Bridge. Technically, repeater mode will work, but then you need to configure a second SSID as the wifi is doing as described: repeating the signal. Client mode will just associate the router with your AP. I have a network of 4 WRT54GLs that are all connected wirelessly, with one of them acting as a pseudo-wireless-bridge for one of my 722Ks. Been set up this way for well over a year and it works flawlessly.
As for DHCP. If the receiver is showing an IP address in the network setup page, then DHCP is working correctly. There is no need to configure DHCP on the client bridge, as DHCP is handled by the AP. You may also need to try a different DD-WRT build. Depending on which version of the GS you have, make sure it is the appropriate version (micro, std, etc.)