Opinions vary on this but...basically if someone is trying to get into your wireless network they can use a sniffer to get the MAC address of a computer or the wireless router itself and spoof the address to gain access. Disabling MAC filtering is by no means a fool-proof security measure, but when used in conjunction with the recommendations by the_mac, it helps to provide better security for your wireless network.
If you have an encrypted network with the SSID hidden, the only people that will be able to gain access already know how to spoof a MAC address. For a novice, it's a pain in the ass to look up the MAC on the laptop, enter it in the modem settings, and pray you didn't typo. If this was for an enterprise wireless network, there would be WPA encryption, a MAC whitelist, and a layer of VPN software on top of it. But this is just a home network that you would prefer that little Billy next door didn't use to download the latest T-Pain album and Girls Gone Stupid XVII.
the_mac,
I was able to access the modem, and change the necessary settngs. I've run Network connection wizards, followed your instructions, and my computer is still telling me the wireless network is unavailable. The distance from the modem to the computer doesn't seem to matter, it just will not pick up on the network. Any suggestions?
First step is to reboot the modem. You should be able to log in and find a reboot button somewhere on the config screens, or just turn it off and unplug it for a few minutes. Try connecting with the laptop again.
If that doesn't work:
Log back into the modem, go to the wireless set up page, and we're going to make a very open, very unsecure, very TEMPORARY network to make sure that everything is working as it should.
Click on the wireless tab up at the top, hit configuration and then give the wireless network an SSID (temp1 is a good example). Any channel you like (if you get bad signal strength down the road, try changing the channel to avoid interference from home appliances), set mixed mode, disable 4x support, and disable SSID hiding.
For the wireless security option, disable WEP. Disable MAC address filtering.
Save the changes, and then turn on your laptop. Have it search for available wireless networks, and then have it connect to temp1 (your new TEMP, UNSECURE network).
If that works, then try adding a WEP key (both to the modem and to the laptop). After that, try hiding the SSID. Only leave the temp network active for a minimum amount of time, because you really don't want to invite people into your own little world. It's bad form. Post back and let us know what develpops.