Please give me some Live setup advice

[balchers]

Hi,

I am hopefully getting my pre-ordered XBox 360 next week (uk), but need a little bit of advice about setting up for live please. This will be the first time i have used an XBox and at the minute i am only connecting to the net via dial up:

My current setup (which i want to keep):

PC's = 2No upstairs.
ISP = virgin.net (UK) on both PC's with several different e-mail addresses
BT line / phone socket by the front door.

What i want to do when i get my XBox:

XBox 360 in the front room (downstairs)
Wireless modem / router for XBox + PC's (wireless is more convenient for me)
Broadband connection (obvoiusly!)

Questions / advice please:

1. I really dont want to change my ISP because of all the e-mails and contacts i have built up. So, Virgin offer a 2mb/s, 20gb/month broadband connection through my BT phone line.
Will the download limit / speed be adequate to play games on live, bear in mind i dont spend a lot of time on the internet and hardly ever download files etc.
Also will this connection be compatible as an XBox rep (UK) said to me that because Virgin is not supported by them (unlike telewest) i could have problems - with connection and lag (So far i have never had any problems with virgin)?

2. I have seen a Netgear modem / router WGT624 Wireless Firewall Router (Super fast 108mbps / 802.11g) compliant with 802.11b and 802.11g devices. Will this be ok with the XBox 360 + XBox wireless router thing and my PC's (i wont have them all on the same time)?

3. I have read somewhere that i should not get a USB modem / router. I havent a clue what this means other than it has a usb slot on the modem, what was this about then?

4. Regardless of all of the above, what are your setup's and better recomendations?

Thanks in advance.

Balchers.