I setup a 802.11b network serveral months ago and I'm pleased with it. I weighed the pros and cons between 11g and 11b and 11g just isn't worth the money for my purposes, and in practice it's not as fast as they make it out to be. Web pages on 11b load about as fast as they do on my wired machine. If you're concerned about security there's a few things you can do. Keep in mind I am by no means a wireless networking guru.
Enable encryption, use a long passphrase.
Lock your wireless lan to MAC addresses.
I only have my laptop on the wireless lan, and my main machine is cat5 into the router setup as a DMZ host (Not affected by the firewall aspect of the router).
If you have a 2.4ghz you may experience some problems. I have a 2.4ghz phone and I haven't had any but apparently some people have.
IMO as long as you take steps to secure your wireless lan I don't think you'll have any problems. It's unlikely someone is going to hijack you.
I bought the linksys starter kit which includes a router with 4 wired ports and an 802.11b pc card, cost about 100 bucks which I thought was a pretty decent deal. You can probably get something cheaper on ebay.
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