The above is in fact possible though it seem like a very uncommon config for most people. This is what I did to make it work.
On the Router itself:
bridge irb
bridge 1 protocol ieee
bridge 1 route ip
!
int g0/1
no ip address
bridge-group 1
!
int vlan 1
bridge-group 1
!
interface BVI 1
ip address 192.168.1.1 255.255.255.0
ip nat inside
ip virtual-reassembly in
As you can see, NAT wasn't applied to the g0/1 interface, it was applied to the BVI1 interface I created.
----------------------------------------------------
On the AP:
dot11 ssid Home2G
vlan 1
authentication open
authentication key-management wpa version 2
mbssid guest-mode
wpa-psk ascii 7 xxxxxxx
!
dot11 ssid Home2Guest
vlan 40
authentication open
authentication key-management wpa version 2
mbssid guest-mode
wpa-psk ascii 7 xxxxxxxxxxxxx
!
dot11 ssid Home5G
vlan 1
authentication open
authentication key-management wpa version 2
guest-mode
wpa-psk ascii 7 xxxxxxxxxxxxxxxx
And here, I had to apply both SSID's (Home2G and Home5G) to VLAN1, same VLAN as my LAN. The two SSID's get's IP's from the 192.168.1.0 address pool and the Guest SSID (Home2Guest) get's it's IP from the .40 pool I created on the Router.
Hope this helps someone in the near future.
