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1) What is it, how big is it and how much does it cost?
It routes traffic on a network, much cleverer than a hub or a switch. Can provide NAT so all computers accessing the internet through it only show one IP. Is about the size of your cable modem, £50 approx.
2) How easy is it to set up?
Easy, plug it in and go basically. It plugs into your Cable modem, then PC's plug into it.
3) Claims are being made that you really need it, in addition to a software firewall, to get the best protection for your PC. Is this true?
You don't need it at all, but it can be handy if you want to share an internet connection with a few PC's
4) Nothing comes without a price, so:
a) Does it slow down your internet access?
No doesn't affect internet access speed, but may make it more difficult to host games, recieve files in IRC. You have to set up port forwarding etc to let a few things through it.
b) Even more importantly, can it produce subtle problems that will have you tearing your hair out and posting here in despair?
Doubt it really, but it does add another bit of kit with the potential to go wrong
Overall, if you need to share an internet connection a router is your best option. To share an internet connection with a hub requires the PC connected to the CM to be on for the other PCs to have access to the net, route means all PC's have equal rights to use the internet when they want.
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