To get some idea of how vulnerable you presently are, you might visit the website of Gibson Research Corporation, and click on the "Shields Up!" section. It will test your present setup and tell you how safe you are or aren't. -- For general reading about new developments in security, you may want to look at ZDTV's "CyberCrime" website, or in particular its page about firewalls, or see Cable Modem Information Network's tutorial on security.
How much security do you need? There is no simple answer to this. More money buys greater security, but no security is perfect. Your need for security increases if you use a system that is online all the time, such as @Home's cable modems, because you are a non-moving target.
To beef up your security, you might start at ACIS's security web page. It includes some free advice (for instance, turn off file-sharing!!) and also a bit of free software. However, I have talked with ACIS's head of security, and he says that ACIS is not presently able to provide you with all the software you really ought to have. In particular, you might feel the need for a firewall.
I've begun looking at some of the low-cost security software; here are some of the products that I've heard the best things about:
http://www.cnet.com/ or http://www.zdnet.com/
There are various news services that you can subscribe to; some of them are free. In particular, members of the Vanderbilt community can subscribe to the Vanderbilt AntiVirus Mailing List. If you subscribe to that, you'll get email messages -- typically one or two a wek -- warning you about new threats and what to do about them. They deal not only with viruses, but with other security topics too. For instance, one recent message announced that people who use java on recent versions of Netscape are vulnerable to a new type of hacker attack. Until a remedy is found for this problem, Netscape users should turn off their java capability.