I plan to set up a home network (sharing my cable modem) for my PowerMac G4 and iBook. From what I have read there are two possibilities...
1) cable modem --> airport base station (via WAN)
airport base station --> PowerMac (via LAN)
airport base station --> iBook (via airport card)
2) cable modem --> PowerMac (ethernet)
PowerMac --> iBook (via airport using PowerMac as a software base station)

What would the pros and cons be of each setup (besides the cheaper cost of using method #2)?

Thanks in advance for your advice.