Hands down, THE BEST router is the Linksys WRT54G. It is the least expensive, most feature packed, easiest to setup and longest lasting router I have ever had. Linksys Wrt54G
Apple Airport Extreme is by far the best, period. For gaming on the 360 or PS3 it is a must, as there is very little software in the way slowing your connection. Yes it is $180, but lets face the facts. All other routers that have average performance are around $80-$100, plus they will not match the connection quality (Apple is Dual Band) or the options, like a guest wireless option. A wireless router is something you use everyday, and will have for several years, so spending a little more up front gets you the best, while making life a lot easier. This installation is a breeze, and the Airport works on all PC's, Macs, etc.
I've gotta say that I can't stand linksys... I recently had set one up in my girlfriends parents house, it died a month later. The replacement sent by linksys DOA, as was the next one. The THIRD replacement finally did work. DON'T GO LINKSYS. To Shawn: Linksys is the only brand I've WANTED to go Office space on so far. I will stand behind and use DLINK always. I've had Dlink set up in my parents house and all my houses that I had when at school and they have never failed me. I can't comment on the Apple routers however I think I may give one a shot, the new Time Capsules have me intrigued and I need network storage anyway...
Hands down, THE BEST router is the Linksys WRT54G. It is the least expensive, most feature packed, easiest to setup and longest lasting router I have ever had. Linksys Wrt54G
babaki's right: you should get the Linksys WRT54G or one of its many variants. But don't stop there, install the free Tomato firmware on it. I've seen routers that cost more than $1k that don't have as many features as that configuration. You'll have the Swiss Army Knife of home networking.
Almost any router on the market is fine. They all work the same and use the same technology. Though, you can't beat the deals at Hyper Microsystems for any computer component or electronics device. You just gotta search through their website and you can definitely find some great bargains. Go here to see what they've got: http://www.hypermicro.com/items.asp?Cc=14%2D004&iTpStatus=0&Tp=&Bc=
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linksys by cisco is really the most bang for your buck. In my experience they have the greatest performance with the lease chance of you going office space on it with a baseball bat. if your looking for a good budget router i recommend the Linksys 160N or if you want to drop a little more coin for extra features go with the Linksys 610N