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Wouldn't make sense to use powerline if the house has existing UTP wire throughout the house. How you've set it up now seems correct. You just need to reconfigure the downstairs router settings to act as an AP as someone else said. Then if you're adding IP cameras, those can be connected to the downstairs router. Keep in mind though that nearly all hi def ip cameras use quite a bit of bandwidth so you'll need a strong network to handle the extra load.
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