Which Router Should I buy?

I live in a dorm, and about half the people in here have Call of Duty 4 on their computers. Every Saturday Night about 10-12 of us gather in the common room and play each other while connecting to the school's wireless internet. However, we have had problems with people connecting and lag. We have decided we would like to look into a router for us to plug into. A few questions are this would connect mac and PC's with almost zero lag, right? Also, what router would you suggest? We are looking for an 8 port minimum, and we'd like to stay under $60. However, we also need something that can handle 8 people playing call of duty on it. One thing I was looking into wasThis. Would that be good? Thank you for any help.

For the money you want to spend you will struggle to get a lag free router, the ones aimed at gaming are far more expensive.
Personally I like D-Link routers, and would probably go for one of theirs.
The one at the bottom of the list on your link looks to be just the job.

Amazon.com: D-Link DGS-2208 8-Port 10/100/1000 Desktop Switch: Electronics

You need a switch - not a router. Any switch will work just fine. The one linked to looks like a decent deal.

mdfuller is correct you don't need a router but a switch. But as it turns out that's what your link is to. And it should be just the ticket for your needs

I'd go with the D-link also. Another $10 and you're getting gigabit instead of 100 Mb.

May not matter a lot, but I wouldn't try to save the $10.

I own that Dlink 8-Port Gigabit Switch. It's worked without an issue for 3+ years now.

While we're on this - I have a question - if I connect a switch to my wireless router - will the switch or the router handle DHCP? Or can I set it up either way like a bridge? Or should I just get a hub instead of a switch if I'm just looking to add more ports at the router location?

If you wire the switch to the router, the router will hand out the DHCP address's.

I have one router and maybe 5 switches. Every computer gets a DHCP address from the router as long as you don't plug in more than 254 computers!

Am sure I'll never be able to afford that many (unless I win the lottery), so I'm safe.