I have a cable internet and wireless netgear router/802.11b access point in one house. I want to extend the wlan to another house

I have a bunch of questions:

1. all the acccess points only connect a wired to a wireless network. When they connect to another access point wirelessly, they would not connect to clients wirelessly. I.e. i need a wireless repeater (for some reason i figured all access points should work like that but apparently none does.) Is there any access point that can act as a repeater between another wireless access point and wireless clients simultaneously (that is not just a bridge only between access points)? and if yes which one can do this?

2. If there isn't such a thing is it a possible soulution to wire two access points together with each other and set one as access point client (to connect wirelessly to the router) and the other as a normal access point - to connect to clients.

3. if that works, how many hops like that (whichever way works) are alowed? Considering the distance (180m) i might have to go through an intermediate house (130m on the further side)?

Direct line of sight is not a problem. There is a difference in the height though - one house is higher on a hill. would that be an issue if access points are in the attics by the window?

thanks if you can help