I think what is getting overlooked here is that the FC40 Camera is the DHCP server.
It is a static gateway at 192.168.1.1 and the DHCP server starts assigning IP addresses at 192.168.1.100.
This is why you have to choose it as the wifi source on your phone.
If anyone here is familiar with *uix, busy box, root builder and Cherokee, they may find out how to change the networking parameters to allow a commercial router to connect. As it is, I believe the signal has internal security with the app to limit access.
The camera is a variation of an Aiptek Air2U Mobile Eyes HD, which is fully enabled with far more selectable options than the FC40.
The FC40 is not recognized by the Mobile Eyes application. The app is looking for an ID that is apparently hardware dependent.
An extender may have to be a pass thru device in order to not interrupt the "login" established between app and camera. That route could introduce more risks.
The FC40 will accept Telnet at port 23. It responds with a Rootbuilder Login prompt. The Login has been mentioned in other posts. Someone with unix experience may be able to do some probing to see what variables are available to make range extending easier using available wireless extender technology. But, without a captured firmware file to fall back on, the FC40 could easily become a brick.
Most of ths is merely musings. I would love to be able to nail it down to absolutes. Additions/ corrections appreciated. SouceForge may be fertile hunting ground.