Lou:
I'm in agreement with you. This is not a typical installation. The program
NetStumbler.com will help you pick a frequency.
You will have to decide if your going b/g/n. Usually b is bundled with n. n has much larger range.
I do agree to go with an Access Point and not a router, because other options are available. The access points ethernet ports can be used, so there is no need for another hub. I have used D-link access points without any problems.
You can set them to repeat another MAC address and I don't see anything wrong with them all having the same SSSID and frequency.
Let your router hand out the IP leases, so DHCP and NAT should be turned off in the access point. The access point itself gets a fixed IP address on the wired LAN, but have it hand out the addresses that the router gives out, so everyone is effectively on the same network.