Firewalls and Routers
When a computer is connected to the Internet, it is connected to the outside world. Traffic (wanted and unwanted) is going in and out through the Internet connection, be it a dial-up modem, or a Broadband (fast) connection like DSL (Digital Subscriber Line), Cable, or Fiber Optic. The greater threat is with a Broadband connection, since that computer is connected to the outside all the time, whenever the computer is on.
It is possible for a worm to be transferred to a computer while it is online, with no action required by the user. For that reason, it's a good idea to have a firewall in place.
A firewall is basically a gateway through which all data coming in or out of a computer goes.
Different data functions on a computer go through different ports; for example, E-mail goes through port 25, regular websites (HTML) go through port 80. A firewall controls whether traffic can pass through a specific port. So, if for whatever reason you blocked port 80 with a firewall, you would not connect to any web page.
There are two types of firewall for use on a home computer: hardware and software. These firewalls take the form of what their names describe: a hardware firewall is a physical component (a Router) that you buy and plug in to your system between your computer and the connection to the Internet, and a software firewall is a program that operates on your computer. Both of these are a first line of defense against outside attack.
ROUTERS
A router is my preferred form of Internet protection. It is external to the computer, provides solid protection, and doesn't place demands on your computer's power.
A router "routes" data on a network between computers.
Now before you move along saying "I don't have a network; I don't need a router", wait a minute. As I've already stated, a router is the best form of firewall, since it doesn't place demands on your computer.
Routers also take care of managing a DSL connection. DSL has a dialer, and without a router, you would have to connect to the network every time you wanted to get online. A router takes care of that connection, so the connection is entirely transparent.
So, if you have dial-up with multiple home computers, or any kind of fast Interenet connection: DSL, cable or fiber, a router is the best way to go. If you have dial-up, but no network, you will need a software firewall.
Routers (wired or wireless) can cost anywhere from $40.00 on up, on sale. I see no reason to spend more than $120.00, even for a more advanced user with a network. The best routers (my opinion) are made by Netgear and Linksys. Even if you don't plan on adding a laptop, you will probably still get a wireless router, since they are the most common in stores, anyway. You can just disable the wireless feature within the router setup.
NOTE: Too many people with wireless routers plug them in and use them, without securing the wireless network. This opens their Internet access (and possibly their computer files) to anyone within range. Follow the directions that come with the router, or go to the manufacturer's support section online to learn how to secure a wireless router.
SOFTWARE FIREWALLS
A software firewall, as I've said, runs on your computer. Probably the most common program for this is Zone Alarm.
When a software firewall is running, it will keep track of programs that you tell it are OK to access the Internet. It's smart enough to know that Internet Explorer and Outlook will access the Internet. Other programs, however, will want access to the Internet, and you will get a pop-up request from Zone Alarm for you to approve the access.
This is where it gets tricky. There will be requests that are quite cryptic, and you may have no idea what program wants access. That CAN be dangerous, since you can have spyware on your machine that is trying to call home and report on you. This is what having the firewall is for, but you may have no idea what it is asking. I've had many instances of e-mail receiving and not sending, networking troubles, etc., and it's always come down to the presence of Zone Alarm.
I have used Norton Internet Security. In my opinion, don't waste your money. Every time I've seen it installed on a machine, the performance has been adversely affected.
Windows XP Service Pack 2 comes with a firewall. It's rudimentary, but better than nothing.
MY RECOMMENDATIONS
I have broadband internet access, and I'm using a router. (I also happen to have a home network). Based on my experience with Zone Alarm (and some other software), I heartily recommend the router for Broadband.
If I had dial-up access, I would just use Windows Firewall, and be careful about what I was doing online.