Step 5 - Sniff Out Wireless Intruders
Even if you've taken every possible step to keep out wireless intruders, there's a chance that someone can slip into your network. So you should regularly check to see whether someone's where he shouldn't be -- on your network. And if you find someone, kick them off. One way to do this is to get the free program, which will keep a weather eye out for wireless intruders, and when it finds any, tell you they're on your network, show you their activity, and even send them alerts telling them that you know they're using your bandwidth. Get it from http://home.comcast.net/~jay.deboer/airsnare.
Step 6 -- Use Firewalls On All Your PCs
The truth is, one of your best ways of protecting yourself isn't to protect your network itself -- it's to protect individual PCs on it. If an intruder makes his way onto your network, but then can't touch any of your PCs, the only damage he'll be able to do is steal your bandwidth. So use a firewall on each of your PCs.
At a minimum, turn on XP's firewall, which is turned on by default. But the XP firewall won't block outbound connections. So get a better firewall. The free version of ZoneAlarm, available from ZoneLabs, provides excellent protection. You can also buy any of the many for-pay firewalls and security suites as well.