WDS stands for "Wireless Distribution Service" and is a technology used by some wireless routers to connect routers together in a network wirelessly.
If your router does not support WDS then it cannot connect wirelessly to another router, even if it itself is a wireless router.
i.e. a Netgear DG834G is a wireless router/modem and can wirelessly connect with wireless clients such as laptops and desktop computers that have a wireless adapter. It cannot however connect wirelessly to an Airport Extreme N wirelessly as the Netgear doesn't support WDS, the only way to connect the routers is with a physical ethernet cable running between the two, not always possible or desirable in the home!
Hope that helps, Grumpy.