> 2.To save cost, I am eliminating the wireless controller for now.
In my opinion, that's a good decision if you will be using 4 or less APs... the main advantage with a controller is not having to logon to and program each one separately; You still have to run cat5 from the controller to each AP, just like from the nearest switch when they're standalone. Once you get over 4 APs it doesn't take very many change cycles to amortize the cost of the controller vis a vis the extra time spent programming each one separately.
Ideally, after they're installed and working correctly, you don't need to touch them or their setups again... but 'ideal' rarely stays that way long in the real world, unfortunately. I have yet to own a wireless router or AP that didn't get at least one important (e.g. security or needed-feature related) firmware update.
You could also get standalone 1142 APs and switch them to LAP mode later if/when you get a controller. I don't think the LAP units can be switched to standalone, though (that's why they're ~$90 cheaper than standalone, typical).
Still, you can probably find 3 or 4 of those Linksys WAP4410N's for the price of a single AP1142N (the WAP44xxN's are sold under the Cisco small business name now, but they had Linksys molded right in the top of the covers the last time I saw one)... that can be a sizeable chunk of savings.
As for the title of this thread, most small-business/consumer wireless routers can be converted to APs by just connecting the cat5 to one of their LAN ports instead of the WAN port, and disabling their built-in DHCP server. Some don't even require the LAN/WAN 'trick' and support turning off NAT internally with their DHCP server switched to 'relay' mode (because broadcasts are usually blocked between the LAN and WAN ports).