It looks like you've configured your TP-Link TL-WR1043ND correctly. But for traditional WDS, you have to configure both intended ends of the WDS link to bridge packets to each other over WDS. So when you ask if you have to do anything on the "AP" side, I assume you mean the Linksys WRT160NL running OpenWrt. Yes, you have to configure OpenWrt to know to do WDS bridging to the TP-Link TL-WR1043ND.
Unfortunately WDS is notoriously under-specified and thus differently implemented between different Wi-Fi chipsets, and thus not always compatible, even with the heroic efforts of aftermarket firmware distros.
The backstory on WDS is that the IEEE 802.11 standard provides a frame addressing format to allow devices to act as wireless bridges between two wired Ethernets. This is known as a Wireless Distribution System or WDS. Unfortunately the standard doesn't provide a link negotiation or authentication mechanism or even a proper link up/down detection/notification system for WDS links. It's like the IEEE specified a few of the basic building blocks, but didn't really specify a full protocol for making WDS work and interoperate.
For best results
Because of the lack of a negotiation mechanism, both ends have to be manually, statically configured. Each must know the MAC addresses of its WDS peers, and they must all be preconfigured to use the same channel and encryption. They can't even negotiate supported data rates, so you have to ensure that they are configured for the same (or a reasonably overlapping) set of data rates. As 802.11 grows more complex with subsequent addenda, there are more and more settings that may have to be manually configured on each end for best results. WME (QoS)? 802.11n HT 20/40 mode? Greenfield mode? ...the list grows every year.
Overall, the only way to make WDS work reliably is to buy two identical or at least same-vendor boxes that support it in their factory firmware, and set it up according to that vendor's instructions, and call their tech support if it doesn't work. Otherwise you'll just get a lot of finger-pointing.
it is a bug in TD-8961, 8951 and other versions of TP-Link ADSL wifi routers.
I have a TP-Link TD-8961ND V3 and it has the same problem. Every time you restart the device you can access the Admin Web portal, but after 24 hours (sometimes more) you loose the access. The WEB, Telnet and SNMP access to the device are rejected.
Updating firmware did not solve the problem. Currently with Firmware Version Build 140305 Rel.04531
The only solution is to reset or power cycle the device.
There are many reports of this problem in TP-Link forums but it has not been adressed by the manufacturer.
I have to add that internet access through the device is not affected, only the management functions.
I had to install a remotely controlled relay to restart the router in case i need to remotely help my parents to troubleshoot wifi problems.
Best Answer
Installing DD-WRT on the TL-WR1043ND allowed me to use it as wireless extender (client bridge). It has been quite easy and straightforward :)