Yes you can connect two routers together.. That is what I had to do. Since my chicken house is over 500ft from the house, I put a wireless router in the machine shed which is approx half way between the house and the chicken house. Then, from the machine shed router, I bounce the wireless signal to my wireless webcam in the chicken house.
ROUTER CONNECTIONS
However, I ran CAT5 (hardwired) ethernet cable (approx 400 ft) to connect the two routers together. They are NOT connected together via wireless. I didn't think I could get a good enough wireless signal strength going through the house and a metal building to make it work to my satisfaction...
In fact, since it was not an option for me I did not even check to see if I COULD connect the two via wireless. I would assume you can, but I never verified.. I use linksys routers.. You may want to check with your manufacture to assure you can connect two wireless routers together "wirelessly" if you are going that route.
CAT5 LENGTH LIMITATIONS
Also, keep in mind if you do use a CAT5 ethernet cable to connect the two routers, you are limited to around 350ft of cable length before it starts to degrade your bandwidth. Like I indicated above, I have my cable length running closer to 400ft and it is working fine.
BENEFITS
The nice thing about it is... putting a router in your shed will give you a "hot spot" out there so you can take your laptop, cup of coffee, sit with the chics, look at yourself on the camera & surf BYC all day long... ;-)
Sorry this is so long, ... but hope it helps..
PS.. Nice picts of the Hilltop Farm on your space
plowbouy