Neither is a software firewall, however moreso.
We've got a Linksys router running 128-bit WEP encryption for the wireless and Mac addressing for the wired/wireless. What's this mean? No one can get into our network without their MAC address being in the allowed list of the router. Needless to say, I don't have any problems with people trying to hack my computer.
I do, however, use a software firewall aswell. Not to protect from hacking, only for program control. If I downloaded a virus that excecuted itself and tried to access the Inet, my software firewall will tell me, and I can stop it. Of course, having good virus protection nearly eliminates the need for this, but I figure what the heck.