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what does a wireless access point do?

The WAP11 is used if: 1) you have a non-wireless router, and you want to add wireless capablity to it, or 2) You have several computers wired into a switch/hub and want to give them access to your wireless router. The link you posted on the WAP11 has a good picture of both of these scenarios..... ("Where it fits in my Network", click on it with your left mouse button!).
 
There are two modes:

Ad-hoc: No WAP is needed, a wireless NIC can talk to another Wireless NIC if they are within reach of each other and the settings are set so

Infrastructure: Your wireless NIC will only send data to/from a WAP (or WAP+Router)
 
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