you are confusing the hell out of me dude but I'll do my best to explain.
The modem is what sends all your internet traffic down the VM pipe to the internet and it doesnt do anything apart from that. It doesnt block anything, run wireless or anything, it is just a receiver if you want to think of it that way so you can get on the internet, much like you need a satellite dish if you want Sky TV.
Now, when you are getting stuff back from the internet you have one or two choices: You can have a pc directly connected to the modem, at which point the pc will be the only device which can access the internet, or you can have a router. The routers job is to route/manage traffic for your local network (your house), whether it is pcs, laptops, mobile phones or anything else. It is the router which can block ports, assign ip addresses and provide your wireless services. If you have a router connected to your modem then that is all the modem can see, it is like it hits a brick wall. Although you might have been supplied with a nice length of coax you want to keep your modem close to the box on the wall for simplicity sake and your router should be connected via an ethernet cable to the modem very close by.
Any distance should be between the devices and the router and not the router and the modem. It is up to you how you want to connect your devices to the router and you know you can either do it by ethernet cable or wirelessly. Either way you have got to have a network interface card and this can either be wired (which you stick your cable in to) or a wireless NIC. Laptops have built in wireless NICs so your laptops can connect wirelessly because they are portable but PCs typically don't.
If you want to connect your PC wirelessly you will need a wireless dongle/adapter, something like this
http://www.dabs.com/products/asus-us...rage-72BS.html
This would come with some software which would detect available wireless networks (your router), allow you to connect to it and ultimately the internet. If you havent bought a wireless adapter like this for your pc then it isn't wireless capable and you will need to buy one.