You probably wouldnt want it on the same channel as the transmitting router as they would fight for ownership of who to connect too.
Are you looking at sharing your Internet Connection with the other users in your house via ICS?
If so wouldnt there be a need for them to have a DHCP server giving them access or statically assigning them an IP and making there gatway your laptops IP address.
If you take the wifi out of the equation on your laptop does it still take the Dlink down when you plug it in?
Give some more detail on the LAN at your house and how users get an IP and route out and i will provide some more things to try.