The upstairs router has addresses on both sides, one address on the WAN connection side, which is a 192.168.1.x address and then others on the LAN connection side, which are the 192.168.2.x addresses.
You're probably unaware of the WAN address because it is being assigned by DHCP on the Time Warner router. This is what @wuench was trying to explain and is the key to the problems you are having.
If you unplug the cable from the TW router from the WAN jack on the upstairs router and move it to one of the LAN jacks, that will eliminate the 192.168.2.x network, and place everything on the 192.168.1.x network. Essentially, you'll be using the upstairs router as an ethernet switch rather than a router. You'll still be able to use the WiFi on the upstairs router this way. You'll need to change the configuration info on the upstairs router regarding DHCP, etc, as was explained in earlier posts.