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Previously my home network is as follows

Speedtouch ST536 -> Linksys WRT54G

But now as I have upgraded my internet subscription. My service provider gave me a "2Wire 2701 HGV" modem. I was wondering if it is possible to put the "2Wire" as an access point. So I might have a configuration as follows?

Room                                                      Living Room
Speedtouch ST536 -> Linksys WRT54G       {Wireless}       2Wire 2701 HGV

Because I find that my signal is very weak.

Is there any way for me to do that?

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The 2Wire 2701 HGV has an ADSL2+ interface so I'd use it like this

[POTS]--------[DSL filter]----------[2701] /\/\/\/\/\/\/ [dongle]-----[laptop]
         RJ11                 RJ11              802.11             USB

Previously I suspect you had something like this

[POTS]---------[DSL filter]----------[ST536]==========[WRT54G]=========[PC]
         RJ11                  RJ11           Cat5              Cat5

Where
POTS indicates a plain old telephone socket.
RJ11 means ordinary two-conductor telephone cable with RJ11 plugs at each end.
Cat5 means eight-conductor (four pairs) UTP cable with RJ45 plugs at each end.

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