Hi all,
After another couple of hours trying to get these two boxes talking to each other, I think I've cracked it!
Here's how I did it (in case anyone wants to attempt the same thing!)
1. Reset the WRT54GS to factory defaults.
2. Connect your PC to one of the LAN ports on the WRT54GS. (Note - I found it easier to disable wireless on the PC before doing this to avoid any confusion!)
3. Type 192.168.1.1 and login to the router config page (no username, password is
admin)
4. On the Basic Setup page, choose "Static Setup" from the drop-down list next to "Internet Connection Type", and enter an IP address on a different subnet to the Sky Router. I used 192.168.2.200 (subnet mask 255.255.255.0, default gateway 192.168.2.1, DNS 192.168.0.1).
5. Scroll down to "Network Setup" and next to "Router IP" enter an address on the same subnet as your Sky Router, but high enough not to risk a conflict with any devices on your network. I used 192.168.0.50 (whatever address you use, make a note of it as you'll need it to get back to the Router config page!)
6. Scroll down to "Network Address Server Settings (DHCP)" and click the "Disable" radio button.
6. Scroll down and click "Save Settings". The router should prompt you to release/renew your IP address.
7. Disconnect the power cable from the WRT54GS, and connect the Sky Router to one of the remaining LAN ports on the WRT54GS. Plug the power cable back into the WRT54GS.
8. Reboot your PC, leaving it connected to the WRT54GS. When it boots back up again it should pick up an IP address in the 192.168.0.x range (this shows the setup is working - the Sky Router has assigned your PC an IP address and the WRT54GS is successfully functioning as a wired gateway).
9. Log back into the WRT54GS config page using the new IP address you gave it in step 5, and go to the Wireless setup pages. Enter exactly the same SSID, channel, and security information as you have in your Sky Router's configuration. Disable SSID broadcast. Once complete, click "Save Settings".
10. Disconnect your PC from the Linksys router, and enable wireless. Hey presto - you have extended your wireless network!
If the PC doesn't pick up an IP address at step 8, something has gone wrong somewhere. Check the cable from your PC is still connected to the Linksys router, assign yourself a static IP address in the 192.168.0.x range (there should be guides on this site to tell you how to do this), and go back to the router config page using the IP address you chose in step 5.
Hope this helps someone in future!