Originally Posted by stimpy
...It is trivial to spoof a MAC address, as it is trivial to see a non-broadcast SSID, as it is trivial to crack a WEP key, even if it is 128bit. ...
A few more points: Trival perhaps, but someone will have to be determined to do so, i.e., your next door neighbor (unless a total hacker/geek) won't be doing it just to steal your bandwidth.
Originally Posted by stimpy
...Server 2000 or 2003 comes free with an 802.1x authentication server and it can be linked to the MS Active Directory.
Setting up an authentication server for a home network is not advised (nor is AD domain security, stick with workgroup mode). Doubly-so for someone new to all this and asking questions.
There's a very well written high-level overview of wireless security at
IBM's PC Institute, look for course TXW15, and ignore the slides unique to IBM products.