How best to go wireless on my old iMac?

I'd like some advice re: going wireless with my iMac SE DV graphite running OS 10.3.9. I'd like to take advantage of my new high speed internet (cable modem) service that I recently had installed since I just purchased a new iMac24"(Leopard).
Besides purchasing and installing an Airport card (plus adapter), do I also need to get an Airport base station?
Is Airport Extreme the "better" base station and can I use it?
OR..........
Is there an option to use the new iMac as its "base" ? ) Would my 2 computers be able to communicate since new iMacs already come with wireless capability?
Am I better off using a stand-alone base station and accessing it with both computers' wireless feature?
Lots of questions, I know but I would at the very least like to keep using my old iMac for surfing, but never again via dial-up!
Any tips and advice?
Thanks in advance and peace everyone.

I assume your old iMac has an ethernet port? - if so, you could look for a wireless ethernet bridge such as this one by Linksys. It connects to the computer via the ethernet socket, and thus doesn't require a driver, and can connect to any wireless-g (or slower) network. Of course as stated above if your cable modem doesn't include a wireless router you will need one. This is a much better route than using the new Mac as a base station, since with a standalone router you don't have to have the new one running in order to be able to use the old one.

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