@911 Medic: I'm kind of suprised you've had such good luck with the router, but I'm sure quality does vary by model. The ones we had were the white boxes, so yours could have been one of their better ones. Good to hear though that someones had good luck with them.
As of late, my suggestion would have to be something like a linksys WRT300N http://www.linksys.com/servlet/Satel...=1340439789B03
It has a ton of features, and has quite a few of those settings that you'd want to change. I'm not sure where PSK falls verus WEP or WPA, but it will do PSK with 256bit AES encryption. You can also set this up with a RADIUS server like Chris is doing. Since Cisco bought Linksys, they have included a lot of the their features into a little more user friendly package, a SOHO device like this is easier for a novice while still providing decent security.
They also have a higher grade model the 350N which has gigabit built in and a storage server which allows you to hook a device up to it for instant network storage or use their media server. I can't comment on how well this stuff works, but I have seen this particular model in use when I went on vacation. (Naturally they plugged it in and called it good, so I just typed in 192.168.1.1 and admin / admin and was able to look around.