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Hardware firewall (router) is great protection, but you have to understand that hardware firewalls only blocks inbound intrusions, while most software firewalls block inbound and outbound. Best protection you can have is to use both, hardware and software firewalls… of course accompanied by avast! antivirus.
I’m running my hardware router/firewall D-Link DI-604 Revision E (latest firmware which is v3.39), as a software one, my choice is Agnitum Outpost, but of course, you can’t go wrong by choosing ZoneAlarm or Sygate. Normaly, avast! is always here. ;D
Cheers !