Originally posted by: wjsulliv
Router:
Splits/shares a single public ip address into several local ip addresses. Can assigns IP addresses. If you want to share broadband without having a master computer share the connection with all the others this is your thing to do.
Access Point:
A wireless hub. Allows other computers to access a network. Does not assign ip addresses. If you want to share broadband and have a master computer always on managing the shared connection this is what you want to do.
Not true for wireless access point, you dont need any master computer to manage the shared connection.
Think of it as a wired hub, you just automatically get your ip on each comp assigned by the ISP while in a router, the router acutally does the work of internet sharing.
In my experience wireless access points works better than wireless router, because often with a router, you will have problems in peer to peer transfers, and there is some configuration to do to get that to work.
Wireless access point can act as a direct connection to the internet without a third party doing some kinda work, think of the access point as a cable tv splitter(all it does is allow you to have multiple connections but does not manipulate the information itself) and a router as a external cable tuner.