how did you get around to being the "Golden Member"
Anyway the model you showed will work, execpt between machines they run at 10Mb/s which is ok, for normal file sharing and stuff. Copying stuff on the network is a totally different story.
From your last post you said 12 people in a software company. Suggest you scrapping that and go with a 100mb/s network. Since everyone is proabbly going to be on the same network, a good enterprise switch - 4800 series from cisco would work.. however note the 4800 is expensive.
In that case just use 24 port rack mountable switches and expand as you go.
A HUB will basically bounce the signal around before delivering its packet - thus collisions
A Switch is smart it moves data by looking at receving mac address - zero collisions (almost)
A Router is like a switch & used to bridge 2 or more networks of different ip's and subnets
A Bridge is like a router with just 2 ports, to intermix network media.
hope this helps.