If you have a broadband connection, you cannt beat a cheap NAT box. Excellent inbound hardware firewall protection, and if you shop around, you can probably pick one up for under $10 after rebate at you local computer superstore.
Those things are great for bringing up a new box. Studies have shown that a virgin box is owned withing 15 minutes of connection -- not enough time to even download a service pack. Hardware protection will protect you from ANYTHING incoming. The only thing that it does not help with is outgoing stuff (infected web sites, spyware, trojans, etc.) So you also need a good software firewall. ZoneAlarm is wonderful, and it is free.
I use McAfee for virus protection, but this is a matter of preference. Asking "Norton vs. McAfee" is like asking "Ford vs. Chevy" or "Bud vs. Coors."
Have fun!