lorddef wrote:
So if it's connected by ethernet I'm guessing that the modem holds all the dial settings and dials out itself like a router?
Routers don't "dial." Both cable and DSL 'modems' are more accurately described as 'bridges;' they bridge from cable or DSL media/protocols to ethernet. There's no "dialing" involved, since the links are always active.
However, the data frames on the ethernet link aren't necessarily what you'd think of as an "internet connection." With some providers (usually cable), it *is* that simple; with others (usually DSL), they may use PPPoE to encapsulate the link and allow for authorization that way (PPP user/pass fields, PAP or CHAP, etc. Yes, same encapsulation as is used for dialup; it seems they're happy to use the same monitoring techniques for either type of customer, since companies with major dialup services have already invested a lot in PPP-monitoring tools.)
Funny thing is, it'd make a lot more sense to use an encapsulation on *cable,* since otherwise you're basically sharing what acts like an ethernet segment with all your neighbors. (Can you say "packet sniffer?" Can you say, "Oh crap, someone misconfigured their personal DHCP server to point outward to the cable network?"

Maybe the Euro services have it together better.)
Anyhow, aside from the ability to share the single address you'll get across multiple machines, most home "routers" can handle things like PPPoE for you, taking some of the headaches out if you don't know what you're doing. Most provider-supplied modems are the dirt-cheapest they can offer, and don't include such niceties built in; many providers do offer unified models as an upgrade.
I still think
2wire's got it going on, if you're someone who really doesn't want to have to think about it. Downside in Amiga-land is you'll need at least one box with real DHCP support to configure the little things, and maybe a Mac or Windows machine if you buy your unit used and need to enter a new "configuration code." (Yes, they normally sell through providers, but there's a "manual code" that still leaves the box about 10 times less confusing than a Linksys to talk your relatives through over the phone. Just easier for them to have clueless people enter one string of random text than look at the configuration screens at all.)