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Device that would work as wireless bridge for media streaming

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I am after a device (another router?) that would work as a wireless bridge for media streaming to my home theatre and provide an Ethernet connection to my TV and MagicTV while future proofing for a gaming machine. I also want to upgrade my home server sometime to something I can leave on all the time and with heaps of disk space for backups and to hold all my media but in meantime I will continue using my 500GB USB media storage device.

The network I am trying to set up is shown here.

I cannot find any definitive information on whether a wireless bridge is possible/feasible. I am thinking it must be possible as others must want to do the same sort of thing but most of the information I can find seems to say that this just is not possible. That I will need to connect both routers with an ethernet cable which I cannot do as I don't want to rip up our walls.

I want to spend less than $200 and don't want to risk buying a devise that won't work for me. I'd would appreciate any advice.

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