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I recently purchased a wireless router. I've read in the past that when setting up a wireless network you should enable encryption and shut off the broadcasting of your SSID. But then I heard some people say how can clients find the access point if broadcasting of the SSID is turned off. Any thoughts?

The simple answer is they cannot, unless you tell them what it is before hand at the same time as you tell them what the pass phrase is..
It is another hurdle for hackers to overcome.
Stuart

They can find the access point, but it's shown without the SSID.
It can be identified by it's MAC address.
You can check this by yourself, by using e.g. NetStumbler.
Your computer must have wireless network card but must not be connected (authenticated) to your wireless network.
Start the NetStumber and see, which APs were found and you will see, your AP get's listed but without SSID.

If you disable SSID on wireless router, you need to specify SSID on computer when you need to connect to this wireless network, so it can only connect successfully. Here are more wireless network security tips, can take a look if you like.

Thanks folks! I appreciate it. By the way, what about interference? The homes are close in my neighborhood and a lot of people have wireless networks. The router I purchased works in the 2.4Ghz band. Can I expect any interference from nearby wireless networks and possibly any connection and speed issues as a result? Thanks.

The main thing is, to use a channel that is not used in your direct environment.
If possible, it's always a good idea to use a channel that differs by + of - five.
E.g.:
If there is one wlan using channel 1 and another using channel 11, you should choose channel 6 for your wlan.

How do I know which channel the other networks are using? Thanks.
Oh, I have another question. My ISP uses PPPoE protocol. I currently do not need to log in. Once the wireless is set up, will I need to log in? I know I need SSID and passcode to get thru the router but how about logging on to my ISP? Will I just have to log into the router or will I need to log in to the router and my ISP network?

Download and install "NetStumbler" and run it and it will list all nearby WLAN's and the channels they're running on.
Your router connects to your ISP, not the laptop (or any other PC/laptop) connecting through the router. Typically if a login is required by your ISP, you login with the router itself and that's the only thing that needs to.

Thank you all! I think I have enough tools now to determine how to proceed. One other thing, if I centrally locate the router on the 2nd floor of my home, there will be a ceiling over where I use my laptop. I don't believe there's insulation in the ceiling. Also, the desktop PCs will be in another room from where the router will be. There will be 3 walls in between: two parallel with the router and one perpendicular to it. Does this sound like there will be any issues with connection and speed? Laptop will be using 802.11g and desktops will be using 802.11n draft.

Most likely the signal will be blocked.. Reposition wireless router and test the result until you get the best one, here are more tips to improve wireless coverage, you can take a look.

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