WEP ("Wired Equivalent Privacy", sometimes incorrectly termed "Wireless Encryption Protocol") has become obsolete, or at least obsolescent. WPA (Wi-Fi Protected Access) is far more secure. WPA2 is somewhat (slightly?) more system resource intensive than WPA. More info here:
http://technet.microsoft.com/en-us/l.../bb878054.aspx
I use WPA2-PSK. Good luck.
[EDIT] The range of wireless routers can be quite good, depending on location and materials used in building structures. I have a cheap ($30) Belkin and can pick up two wireless networks besides my own. One of them is unsecured.
If I knew which of my neighbors it is, I'd offer to secure their network. I have two neighbors about 100 feet away, one of whom I know has no computer. And there are 4 more houses about 200 feet away. My router is in our second-floor computer room in our wood-frame house, to give you some idea of the range possible. Anyway, WPA2-PSK is easy to set up and reasonably secure.