wireless computer setup for security?

Help with security on home wireless network..?
ok, I have had my wireless connection set up for a while, I have gone to the 192.168.0.1 and went to the wireless network config page. when the ssid is enabled and the wireless encription key is- not- enabled I can us my wireless on my other computer. but this leaves it open for anyone around my street to access my wireless. BUT when I go and click the box to enable both ssid and wireless security none of the wireless works. ( even the kids psp,ps3 etc)
How do I set this up so that I have full security and have all of my wireless computer/electronics able to connect to internet ( with out having to keep unchecking the -enable- box and leaving out network open to others? I am so confused, and Im betting its something really easy but I am just missing something?
thanks
I use qwest dsl with a wireless router..

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