I connect to the internet with an "always on" cable modem, hackers love these and target them specifically. I also have a small home network with 2 computers and had a spare pc that I installed Mandrake's SNF distro on. SNF is basically a smaller version of Mandrake that has been stripped down and tweaked for security. It uses the Bastille firewall and the Snort and Prelude intrusion detection packages as well as many other security features like IP Masquerading, which hides your real IP from the outside world.
SNF also has a Secure Administration feature that let's you login, configure and update SNF via any web browser connected to the local lan. Another advantage for me was that I can use one internet connection for all pc's on my home lan, this will save me about $10 a month, I found this to be a great solution for my home network.
I installed SNF on an AMD 450 box I wasn't using, both nic's were recognized and SNF correctly setup eth0 for the local lan and eth1 (connected to the Roadrunner cable box) with DHCP. When I logged into SNF I found that I had internet access, I could also ping the 2 client computers and they could ping the firewall box but the clients could not access the internet.
The solution was simple, I opened up a console on the 2 client pc's, typed: "draknet" and configured both pc's with static IP's, added the IP of the firewall as the "Gateway" and added my ISP's DNS address (Roadrunner did not have the dns info on their website and as always the RR tech guy's were absolutely clueless so I used the "dig" command to detect the DNS).