Every network card/interface has a unique number, long number, I don't remember how long. This number is built right into your hardware. So your ethernet card would have different number than a wireless card on the same machine.
Mac Addy filtering means the router will only route traffic to those Mac addresses. Thus no one stealing free internet access. Works great.
Older encryption methods, WEP, used a key like with ssh or some such to secure your wireless transactions. WPA_PSK is a newer thing that is different some how, I don't but it is supposed to be better. I am could be wrong at how this works, I use 64bit WEP myself because that is all my laptop will support.
Just make sure you have computer non wirelessly hookup up to the router to configure it. Otherwise you mess up the wireless connection and cant access it to change it.
Varikin
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