You are all correct but considering the Indian Scenario , DSL/ADSL or cable is not very common out here in India. Hawk , don't know about BOM but here in DEL we have major issues with DSL providers and the bandwidth they give. I had recently configured this for my home, so can help you out with the details if required.
Bharati in Delhi provides the DSL services , if you take theiur connection INR 6000 for a 64 KBps connection they give an Ericsson router free of cost with the connection. The router is capable of running a DHCP server and is also wireless. I have 3 comps at home all with wireless network cards and the Ericsson router works fine with them . So in short the cable RJ
11/RJ 45/BNC from your provider goes into the router. Based on the type of router you use , the PC
's connect to the router either via UTP CAT 5 or wireless. The router provides the natting , in the sense that it will provide IP addresses to the 2 machines connecting to the router and itself accept one IP address from the service provider and one which you will need to put in when you configure DHCP.
The other option you have around here is to use Netgear, specially if you are getting the net thru cable or UTP cables being placed around the countryside by 1000 different providers , dont know what the availaibility of it in BOM is like but there are various models available in Delhi for about 6-7000 Bucks. I would personally suggest using the wireless model , dont rememeber the exact model number . The wireless NIC's are exepnsive , more than normal NIC's but are definitely worthwhile .
If you need any more help feel free to post here or mail me.