[Sephiroth]

If nothing else is amiss in your circuit, the SH2 in router mode should suffice for the uses you described. Indeed, do turn off everything extra that the SH2 does actively (i.e. leaving the PPTP (VPN) and ICMP settings enabled).

Of course if your previous router has the legs, it's best to be in modem mode for VMNG reasons!

BTW I was in router mode for 4 months as part of the SH2 trials and it was up to the mark. I reverted to modem mode because I then never have any doubts if anything goes wonky (which it doesn't).