Wep WPA, whats the recommended again?

[Microman]

Want to turn encryption on. Currently only have certain MAC Addresses that can connect, but I know that doesn't stop some.

Which enryption should a simple home system setup.

And what do you do, on the Router, just turn it on in the menu, and you will see a KEY, which then when you log on with the Laptop it will ask for the KEY one time?

Thanks.