peter Wrote: 
> 
> Isn't the confusion due to the fact that most DSL/Cable 'modems' are
> actually NAT routers themselves these days? The price difference
> between
> pure modems and modem-router is negligable IMXP.
> 
> Perhaps it's wiser to work from that situation...
> 
Not at all. You can use switches and hubs directly connected to your
modem. In that case every device is directly connected to the WAN
(internet) and needs a public IP address assigned by the ISP's DHCP
server. You merely extend the WAN but you don't build your own network.
>From a security standpoint this is the least desirable solution. All of
your devices can be seen and contacted to form anywhere in the
internet. This setup is basically the same as having each device
connected with its own modem. 
If you plan your own private network you should do so without even
thinking about your internet connection. Your network is an independant
entity that does not rely on any connection to the outside world to work
properly. Think about the hardware you need in an generic, abstract way.
You can decide later about manufacturers and models. 
Here's what you need:
- something to connect the network cables form your devices together: a
switch or hub
- if you have wireless devices: an access point for wireless
- ethernet cable to connect your devices
- if you want dynamic IP assignment: a DHCP server
Now that we have an abstract private network we can consider the
internet connection. The internet is nothing more than somebody else's
private network: We need to connect two different networks. We
therefore need a router to route traffic from one network to the
other.
What about the modem? The modem is only used to do signal "transcoding"
on a low level. Basically to connect ethernet to copper/coax cabling. It
has nothing to do with TCP/IP. The modem is never part of your private
network, even if it's physically on your property! In short: As long as
the modem is the device closest to the wall socket you're fine.
Finally when we want to buy the actual hardware there are products that
integrate some or all of the above generic devices into one case. If you
see something like a wireless modem router with integrated DHCP and 4
LAN ports it simply means that there are 5 devices in one case: a
wireless access point, cable/DSL modem, router, DHCP server and 4-port
switch/hub.

Oops, this became a bit long winded. Well it might be helpful for
somebody someday. 

-s.


-- 
slimpy
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