Home WiFi - What do I need?

I'm planning on getting a laptop for a family members' birthday, and I want to set-up a WiFi network at home so they can just use it wherever.  Problem is, I'm not exactly certain what I need to do.  I currently have DSL service for my desktop (1100-1200 kbps typically), ethernet wires, etc. 

What should I know, and what should I get?  I know a little, but any good information anyone can provide would be great!

A wireless router is all you really need.

Get a Linksys WRT54G. Connect your DSL modem to the router. Connect your desktop using an ethernet cable to the router. Configure router (see manual). Setup wireless with WPA encryption. Configure laptop.

Listen to Anon 3 hes on the button