The saga of Linksys continues. I got a replacement router. My Zaurus now works fine. I updated my post on Zaurus DevNet Forums. I got the router configured last night as a second router on the nework. (I needed to turn off gateway, assign it 192.168.1.2, disable DHCP.) I also got the iMac working again through the wireless connection. I also enabled WEP. Yea!
Next LinkSys saga item is to get the VPN router working or replaced. It was not port forwarding last time I tried. I will try again this weekend, but give up and send it back if I can't get that working. I plan to use it as the gateway because it will support the VPN to Tod and also support the port forwarding.