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Some wireless cards will support running as an access point in an "ad-hoc network". I don't think it is worth the trouble. Get an access point or router.
MAC spoofing is trivially easy. You should be running the highest level of encryption your devices support. If something only supports WEP, replace it.
WPA2 (or WPA) with pre-shared keys is the most practical for home users.
WPA2 (or WPA) with Radius if you are feeling lucky, or don't mind beating your head against a brick wall.
Not broadcasting your SSID helps, but not much.
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