Newbie wireless question (slightly off-topic)

I didn't want to post this here as it's not entirely an Airport-specific question. I posted this to the iBook forums, but nobody there has answered so my apologies if this is not welcome here. (Any moderators can remove it if that's the case.)
I've been using computers extensively for over a decade, but I'm a total newbie to wifi. I just set up a wireless network in my house and would appreciate some advice/feedback.
My main concerns are whether or not my network is reasonably secure. I know there is no such thing as perfect security, but I don't know if what I've done is good enough or not.
I don't have an Airport base station, but I do have a D-Link Airplus G and an Airport card in my iBook. I have WEP set up on the router and I have enabled MAC filtering, listing only my desktop and my iBook, excluding all others from the network.
I'm fairly certain that nobody in my neighborhood is going to get into my machines this way or be able to sniff my network data stream, but am I right in assuming that nobody can "piggyback" on my Internet connection too? Presumably, if everyone but my own machines are MAC-filtered and kept out, then the Internet connection is also protected. Is that how it works?

WEP and MAC filtering are better than nothing, but you can do better. These are my suggestions:
1. Use WPA with a pre-shared key (PSK) and TKIP encryption on your Netgear router, along with an alphanumeric passphrase of at least eight characters not found in any dictionary. The equivalent setting on your Mac is "WPA Personal". Unlike WEP security (which an expert can crack in under half an hour), WPA security is currently unhackable by any practical means as long as you use a non-dictionary passphrase. One last point - WPA security requires all your wireless Macs to be running MacOS 10.3 or newer.
2. MAC filtering is (these days) essentially useless as a wireless security method. Using "packet sniffing" of traffic on your wireless network to find out what MAC addresses are used by computers on your network, and a PC that allows its MAC address to be cloned so that it is identical to the MAC address of one your own wireless computers (which is possible with most PC wireless network adapters) even an amateur hacker can defeat MAC address filtering in minutes.
By the way - I don't think your posted message here is off topic. In my opinion, the Airport discussion forums are the best place to post any questions related to usage of wireless networks. Questions of this nature are virtually never specific to any Mac model.

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