Well, let's get some terminology straight.
Just because something terminates DSL in to Ethernet doesn't make it a router; it can be a router as well, but doesn't automatically make it one. So, it sounds like you've got a DSL modem that also has routing functionality, which is your "A" device. The "B" device you describe seems to need to be more of a standard Access Point, one that passes IP traffic transparently, but also does your captive portal login page.
While m0n0wall could possibly do basically that, it's a router first (and I'm not 100% sure you can shut off routing and make it transparent), so if you use m0n0wall as your "B" device, your "B" device becomes labeled as a router as well. It should work that way (mind the subnets, as mentioned before), but the terminology will help. Now, m0n0wall only supports a small set of wireless cards, so it's usually better to use a separate AP, which would be another block on your diagram.
Or, you could convert your DSL modem/router to simply be just a modem, make m0n0wall your root router with 3 ports. 1 port goes to "WAN" (DSL), one goes to LAN, and the other is for Wireless with the Captive Portal that goes to the AP (or multiple APs) of your choice. Like I mentioned in the middle of my earlier comment.
I don't know about APs that natively do Captive Portal, so I can't help you there. But, realize that you've been given information that, by all appearances on our side, should work. It may be slightly complex, but sometimes that's the nature of free software that runs on commodity hardware
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