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Still wanting bit more advice on more routers, so don't totally take over this thread!
Guys, I'm looking more model specific. Not just brands. What are you currently using, what was price, where from and is it worth it?
You're going to have to stretch your budget a bit if you want a decent wifi router, as R650 won't really get you anything impressive.
I got a Billion 7300G (~R900) for my gf and it's a good router. Wifi performance is about the same as the Netgear DG834's, which is average. If you want great wireless performance then you'll need a router that supports 802.11N. I have the Billion 7300N (~R1300) and the wifi performance is impressive, providing coverage throughout a double-storey house.
The only reason that I recommend Billion is that it will easily allow you to do half-bridge (one account set on the router as the default account, with the option to dial into another account from your machine if you wish).
Domoreto, there should be no difference in connecting to your DSL modem via cable or via wireless N. The only issues with wireless should be the wireless range and security measures.