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Originally Posted by Gareth
I'm also unsure why you think that using DHCP would be problematic and difficult to manage? The router uses NAT to handle IP assignment of all connected endpoints? Where's the problem? 
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If you are going to have an untrusted IP on your same subnet you will need to set up your software firewalls to block it.
But if IPs are assigned via DHCP then you firewall rules will somehow have to to know which IP is untrusted.
Personally, depending on how many PC's you have to manage, I think its easier and simpler to put your own network behind a 2nd router. which all you have to do is switch it on and you are immediately protected from anything that may be going on the other side of the wall.
I personally would never put a neigbour on the same subnet as myself, and also expect to trust any machines on my subnet. People can set IPs manually and walk through your securiry. Alternatively , after a powerdown, DHCP might juggle all of your IPs around.
You might not agree, but to me that seems the right way to do it. Once you home network is a certain size its easy to have a centrally managed router/firewall than lots of "Software Firewalls" all over the place.
I will now stick my fingers in my ears.
I didnt even like having my Brother on the same subnet, when we shared a flat, but I taught him the dark arks of Firefox/Thuderbird/AVG and Kerio.