Wireless basic question

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I'm about to set up a wireless connection in my house. I'm not sure whether I should buy a wireless modem or router. When would you use one over the other? Is one faster?, is one a lot cheaper? I would be running my Macbook pro and my Dell, so something that can support both would be nice.
 
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Your Mac's Specs
iMac Core Duo 20", iBook G4, iPhone 8GB :)
Here's how it goes. In case of an ADSL connection, the wire comes in, you plug it into the modem, which then passes the internet to the router which then passes it onto the computers.

A router you will definitely need. But you can get one of those modem+routers which is just as well. However, most of these combined devices have sort of okay range compared to the dual-antenna or triple antenna dedicated routers. They are fine for normal use though.

And try and get one with the 'n' specification...
 

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