I just added a Verizon Network Extender in my house because I was having trouble getting a good signal on my droid. But now, I still see no change in the signal bars shown, but the signal strenght is improved according to the Antenna Widget that I have. Without the Network Extender it shows about -103dBm, and with the Network Extender I see about -60dBm but about 1 bar on the Bar scale.
My wife has another model phone and it shows nearly 5 bars on it with the Network Extender.
Anybody else seen any issues with the bar indication on the droid?
I don't think you need worry about the number of bars. I'm sitting right next to my extender and have a full bar load, but downstairs I get one usually and two once in a while. My Droid works fine in the house anywhere. Our previous phones, EnV3s, did the same thing. As long as you have the extender in a centralized part of the house ( upstairs if a 2-story ) you should be fine. Just be prepared for the sudden, unannounced, and unexplained nationwide extender outages. When that happens, and it will, you'll have no bars and I actually have to go up into my field about 75 yards from the house to get a signal. Not fun in winter.