Wireless network questions

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1) Signal strength - does a low (2 bars) signal strength equate to a lower speed - stupid question maybe but the windows wireless connection thing still quotes 54Mbps whether it has an excellent signal or a poor signal.

2) With my home broadband connection, I have a desktop in the same room as my router, where I want to use my laptop gives me 2 bars of signal strength (hence the question above) I have a spare wireless router and a phone extension off the line configured for broadband into the room in question, could I use the extra router on the phone extension in the other room?

3) If I can't do the above then are there any boosters (?) available that will boost the signal from my existing netgear DG834GT router?

As ever, thanks for any suggestions!
 

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