by 
The Curious Bag
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<h4 class="dechead">On One Hand: Ad-Hoc and Direct Connections
If you want to connect to another nearby computer that also has a wireless adapter, you do not need a hub or router. This is called an "Ad-Hoc Network." Windows XP requires you to set this up manually, but Vista and Windows 7 mostly use "wizards" to automate the process. You can also connect your laptop directly to a wireless modem.
On the Other: Convenience and Security
Some devices may not be compatible with an ad-hoc network, in which case having a router allows them to connect to your network. Also, a router contains a firewall, which is a device designed to filter out unauthorized access to your network.
Bottom Line
If a router fits into your budget, its advisable to buy and use one. A router's firewall will create a safer environment for your attached devices. It is not essential for general home use, but it gives you more control.
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