The Basics 

Definitions and purposes

Router: A small, specialized computer that sends information from one source to one or more destinations. This is necessary if you plan to share an internet connection with multiple computers and internet-connected devices, such as DVR or home entertainment PCs.

Network Interface Card (NIC): This is the component in a computer that communicates with the network. NICs comes in a variety of flavors and price ranges, from USB for your laptop to PCI for your desktop. This is an essential component to any system connecting to the network.

Network Cable (Cat-5 or Category 5 Untwisted Pair): This is the fancy name for a cable that looks a lot like a phone cable, only larger. For ethernet networks, this is the path that data passes through from one device to the next.

Wired Equivalency Protocol (WEP): This is a way to keep your data that runs through a wireless network a little safer.

WiFi Protected Access (WPA): This is a lot like WEP, only it's a bit safer.

Firewall: A hardware of software firewall will block intrusions from potentially malicious connections either within the network or from the internet. This is an essencial part of your network to keep you and your family safe from threats online.

Network Types

The following is an interactive diagram of the types of home networks and how the devices interconnect from our friends at HowStuffWorks.com :

This is one of the most common network types for both home and office networks. This is primarily due to the availability of hardware and easy of configuration. With most modern hardware components, the process of setting up an ethernet network is as complicated as putting an answering machine on you phone line as all devices can generally connect to a single router and the router can take an internet connection and split it between these systems. This enables all computers on the network to have the ability to talk to eachother and to the internet at the same time. You'll find that NICs and routers designed for this type of networking are the most cost effective and easy to find, with the widest variety of options for security and hardware features.

The Wireless Network

Though it is the latest to the consumer market, it may not be the greatest. It's innate ability to connect digital devices without wires makes this the aesthetically pleasing choice, it also runs at lower speed in comparison to a wired network. Beyond the loss in speed (which is, with time, becoming less of a concern as technology and FCC regulations change), there is also the problem with security. Though WEP can keep neighbors and other close-proximity individuals from instantly picking up and accessing your network there are security gaps that can be exploited with a small amount of research and a couple hours of spare time. This solution for home networking may not be for everyone, but if you'd like to keep a home free of unsightly wires this may be your best option. Bear in mind, most hardware components come with the proper security tools to keep you safe, but some configuration is needed so consult your manual and online documents thoroughly before using the network regularly.

Just as with an ethernet network, a router will be able to take the incoming internet connection and send it to all wireless capable devices and those devices, through the router, will be able to see and communicate with each other.

The Phone Line Network

This is a less common solution, but just as good as an ethernet connection for most home users. The line is capable of a constant 128 Mbps connection for connected devices, making it possible to use bandwidth consuming applications like streaming video and audio. This is also an effective solution for the consumer looking for a 'wire-free' design. Though it isn't truly wire-free, it makes use of a wiring installation accessible in most areas of a home. There are rare cases of small amounts of voice phone-line interference, but, again, these are rare. Despite the fact that information is sharing the line with a telephone system, there is generally no interference with voice communication so you will still be able to place and receive phone calls without a problem.

For more information on this technology, please visit Home Phone Networking Alliance

The Power Line Network

 This is VERY similar to the previously mention phone system network, only it travels along the power grid (giving more options for computer placement) and none of the potential voice interference.