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The two best home wiring options are thin Ethernet (also called 10Base2) and unshielded twisted-pair cabling (also called UTP or 10BaseT). Your choice will depend on how much you're willing to spend and how your home is set up.
Thin Ethernet
Thin Ethernet cable looks very much like the wire used for cable TV. It's rugged but stiff, making it a challenge to run the cable through walls, and it's inexpensive and requires the least hardware to connect. The cable is run from one computer to the next, to the next--until you get to the last computer, where you add a cap called a terminator. Thin Ethernet runs at only 10 mbps, much slower than UTP. And, depending on your home's setup and the number of machines you're connecting, it may be inconvenient to run cable in a line through every room.
Thin Ethernet requires a BNC connector, a little metal cylinder with two nubs near the outside edge. You can buy standard lengths of cable that already have connectors, or you can buy the connectors at any good computer store and crimp or twist them on using a special tool.
UTP
UTP cable looks like telephone cord and is more flexible than thin Ethernet. If you're willing to buy more expensive adapter cards and a hub, UTP can run at 100 mbps--way faster than thin Ethernet. With prices going down every day, there may soon be little difference in cost between the two systems.
In a UTP network, the wires run out from a central hub (a box to which all the computers are connected, and through which data is routed) like the spokes of a wheel. A UTP network may work better for your home than thin Ethernet, but setting up a hub requires some fiddling, and many users opt for the simplicity of the thin Ethernet system.
With UTP, you'll need an RJ-45 connector, which looks sort of like the connector on a telephone cord. Again, standard lengths usually come with the connector in place, or you can buy a crimping tool for about $5 and install the connectors yourself.
If you go with UTP, you'll also need to purchase a basic 10BaseT hub for about $60 (for a simple eight-port model); any computer store should be able to sell you one. Be sure to get one that has several more ports (or connections) than you have computers: you don't want to have to buy a new hub when you decide to add to your network.
Whichever system you choose, check local building codes to make sure the cable is approved for your location. In a fire, some cables can emit toxic fumes as they burn. If you're using twisted-pair cable in a home, always choose cable labeled as Multi-Purpose Plenum (MPP), and make sure that it's installed properly.
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