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I am setting up a wireless home network with four computers, and a cable gateway and router. I could og linksys for about$500, but I could go generic for about $250. Is it worth it to go Linksys for twice as much?

Hi there,
this is only a suggestion, but it's always up to you to decide with products you're going to buy.
if you purchase a generic one, you may not get the support you want. ex. not as frequent updates of firmware and not as good documented info for you product.
Also, maybe not as many quality parts on the generic one.
hope you will make the right choice that is going to make you happy.

What do mean by generic? Linksys is a low-end brand.
What components are you considering buying vs. what else?

Hmm well, I talked to someone at a local computer shop about it through email. He told me "The best products in the market is by linksys and you are looking at about $500.
for the whole set. generic brand about $250." He didnt explain the real difference between the two, which is why I asked on this forum.

Ah, so only he knows what generic means. That's okay.
Basically you need three things for the whole setup.
1) A modem (for your cable). You usually buy this with the ISP package, but they are sold seperately as well.
2) A router. This will share the IP address that your modem gets. Nerds will setup an old computer as a router and regular people will use the Windows feature of Internet Connection Sharing, but neither of these is really ideal. Routers are cheap (a Linksys is about $40).
3) A wireless access point. This just sends a wireless signal.
Now here is where everything gets complicated. A router also has a built in switch (4 ethernet ports). Some routers come with firewalls as well (ability to block logical ports and packet types - a necessary security feature you can have in the router or on your computer as software).
Also, some routers come with wireless access points built-in (along with 4-port switch, which is standard).
Just buy a cable modem recommended by your ISP.
Linksys is not the end-all of networking things. I have not found their documentation to be superior to their competitors, though it does help that lots of other people have them. I have not used their support.
Other simple networking brands include D-Link (a lot of techies like these), Hawking (some of the cheapest stuff, never had a problem), SMC (okay, some decent wireless), Netgear (good reputation), Microsoft (don't go there, beta quality sometimes), and Belkin (never hear much - they make good cable though).
That said, Linksys is a fine brand and I would recommend them. Just understand there is more than Linksys and most of it works just as well.
For your router, I would recommend getting a router that has wireless access and a switch (standard). The wireless G-standard is a better quality wireless. Linksys has one that incorporates all the wireless standards (A, B, and G), so any wireless NIC can work. You can also get a router with wireless A+G (not the B - if you don't have any B-only devices you don't need to support them).
A+B+G Router:
http://www.linksys.com/products/product.asp?grid=33&scid=35&prid=537
(about $230-$260 - the router version)G Router:
http://www.linksys.com/products/product.asp?grid=33&scid=35&prid=508
(about $110-$140 - again, the router version)Use a site like www.dealtime.com and seach by wireless products, brand, and keywords.
Others include nextag.com, pricegrabber.com, bizrate.com, and mysimon.com.

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