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you should use a combination of hardware and software firewalls. today's "firewalls" you buy at best buy, like the linksys, dlink, and _most_ netgear (besides the prosafe vpn models) use NAT as their firewall. not very firewally, but it generally deters amateurs. it's been well proven they can get through. the prosafe uses stateful packet inspection. really want security on an affordable basis? get a sonicwall.
i use sygate for the software end, also have been impressed with symantec and mcafee. i'd probably stick with symantec and sygate. and if you can afford it, the symantec hardware firewall ;P
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