For an Internet connection, your Internet download speed is limited by how much bandwidth is provided by your ISP, so unless you have one of those high speed internet services, chances are you won't make full use of it.  In other words, if your ISP connection is capped at 2Mbps, getting 802.11g won't make surfing the Internet any faster because the Internet connection is where the bottleneck is.

 

Unless you regularly transfer large files WITHIN your network (from computer to computer), then 802.11g wont help you and b would be fine

But, the 802.11g router today are really not significantly more expensive than an 802.11g, so unless you are in a budget crunch, I would get one of those.

Most of the wireless routers that are available in the market support 802.11b & 802.11g. The transfer rate betweeen wireless router and wireless client matters [So, I would suggest 802.11g]. The wireless network that you would be setting up with the router and the laptop/desktop is a separate entity. The speed of internet connection from your ISP might be 2Mbps or more, so when you have wireless router connected & a computer wired to it, it will browse approx the same speed, the wireless client might show some difference, but it will still provide a better/good browsing experience.

One point of clarification, you assumptions are correct on the speed, but be aware that 802.11g equipment is downward compatible with 802.11b but B series cards can not connect with G specific routers.  Combo units , yes, but not routers that only use 802.11g.

To be completely compatible, the 802.11g standard is the best but I have seen no downward standards on the H & I cards coming out in the next 18 months.

That's a very good point. My 5150 has a wireless a/b/g wireless card. Seems like overkill I know, but since it's portable technology, it should allow me wireless surf anywhere without worrying about what wireless standard is being used. From what i've heard, wireless-g has a shorter range than wireless-b. Here's a good article on wireless standards from Linksys http://www.linksys.com/Products/wirelessstandards.asp. Here are some things about which standard might be right for you http://www.linksys.com/Products/whichstandard.asp. And, here's also some more information on wireless security from the same site http://www.linksys.com/splash/wirelessnotes.asp. I always try to get the most options, expandability and usefulness for the dollar, I hate upgrading every few months.

Mike.