Old news gg... very old news ! Was covered in depth (amongst other things) in the book WiFoo (worth a read if you wish to be enlightened in the fundamentals of WiFi security, although there have been new topics since its publication so technically its a little out of date).
Everyone should be using WPA2-PSK AES with a strong key. Still not ideal, but better than nothing.
The technically minded should be running certificate-based authentication using WPA2-Enterprise and a RADIUS server.
For step by step instructions on the latter, try
here (or any of the other places Mr Google may choose to deposit you)...... but as I said its for the technically minded (very low maintenance once its setup though), for anyone else, WPA2-PSK with a strong key.
P.S. When I say strong key on WPA2-PSK AES, I mean it. WPA2-PSK with a low strength password is pretty much the same as running an unencrypted network. And no, running your wifi network as "hidden" is NOT a security measure.
