You don't say what type of router the second one is. If it's a Cable/DSL router (i.e without a built-in ADSL Modem), then its WAN port should be connected to the main router. Its WAN IP address, which would normally be an internet IP address, will in this situation be a 192.168.1.x address allocated by the first router. It will in turn allocate 192.168.2.x addresses to any computers connected to it.
The problem arises if you should want to network computers connected to the different routers, and thus different Subnets (IP address ranges), because they won't see each other. The Subnet Mask, as its name suggests, "masks" the separate Subnets to keep them separate.
"I try to connect a brand new laptop and it wont connect. It can only see router 2 (192.168.2.1) I have ping'ed 192.168.1.1 but its not accessable. I have gone into the dhcp and changed the default gateway to 192.168.1.1 on the laptop but still won't work"
If it is connected to router2 with a 192.168.2.x IP address, then its Default Gateway address is 192.168.2.1 and router2 itself will have a WAN Default Gateway address of 192.168.1.1 which is router1. The computer with a 192.168.2.x address will not be able to ping 192.168.1.1
The alternative arrangement would be to disable router2's DHCP server and connect it via one of its LAN ports to router1. It would then perform as a basic Network Switch / Wireless Access Point with all addresses allocated by router1 and in the 192.168.1.0 subnet.