For any two parts of the network to talk to each other, there has to be a route between them. In a wired network, this is done by physical means – the cables (generally cat 5 or Ethernet cables). These cables come in lengths varying from a few feet to hundreds of yards long. There is a limit to how long a cable can be before a router or a switch must be put in between cables; however, this is a lot longer than most people setting up a home network will need to be concerned with.

With a wireless network, you can't see the path between components, but they are no less real. Instead of cables, radio waves carry data. Though they may be affected by interference, just as a radio or TV signal, this is almost never an issue in a home network, almost never. Be aware though that metal inside your walls, microwaves, solar flares and the like can interfere with a wireless signal. Even walls can reduce the strength of a wireless signal.

When setting up our home network, you'll need some equipment to send and receive the signals that will be carried, whether by radio or cables. A network interface card (or NIC), typically an Ethernet card is one component that you will need. These are common and very inexpensive and come in different range of speeds, anywhere between 10MB and 1 GB. The speeds depend on the card you use – a 802.11g wireless network works at 54MB per second, while a 802.11b network runs at 11MB per second. As prices keep dropping, the lower speeds are becoming less commonly seen.

A network interface card can be either cabled or wireless. The cards in two different devices on a network are hardly ever connected directly by cables, but rather are connected to a switch or a router.A switch is a simple device; it's like a box with ports for the Ethernet cables to connect to. They are extremely inexpensive and work well for networks which don't need an internet connection. Routers are more commonly used these days though; sometimes multiple routers will be used by home network builders.

A router does exactly as the name implies; it directs network traffic. It performs this function by means of IP addresses and software created for sending and receiving data between devices. Routers can be either wireless or cabled. Each can be found in many different models from different manufacturers. There are different built in software's with different functionality; some feature antivirus software built in. These routers differ in their number of ports (which decides how many devices can be plugged in to the router). There is also a difference in the speeds at which they operate; they may not run at the speed they are rated at. For instance, a router rated at 54MB may actually run at 6MB.

There are other components which will be part of your home network, such as a cable, DSL or satellite modem for internet connection. The devices listed above are what you'll need to get started though with the basic set up of your home networks system..