What exactly is the difference between the two and when would you use each of them?

Very simply: An access point is just a device to connect your WiFi signal to the wired network. A router is a device that sits between networks and directs traffic. The most common use of a router in homes is to share a cable modem with multiple users. The routers that are usually recommended in this forum are both wireless APs and routers.

There are two completely different (but related) things…

An access point (AP) is a device that allows you to “connect” one medium to another, for example, you have a wired network and you connect an AP to it to allow for wireless “clients” to connect to the wired net.  The concept works the same for WiFi, Bluetooth or any other technology.

A router is a device that allows for “packet distribution or traffic control” on a network, for example when you have a local net with a gateway to an external net, the router would be in charge of “routing” the packets to the proper interfaces depending on the destination.

What is usually called “a wireless router” is in fact a combination of devices, like a NAT, a wireless access point, a DHCP server, a switch, etc,  all into the same box.

So….. Bottom line, if you want to share a single internet connection with several machines, including one or more wireless machines, then use a “wireless router”.  If you already have a physical network running, with perhaps the internet connection shared by another device, use an AP.

Regards,
Marcelo

Oops… Sorry Drachen!!!

You posted while I was writing

I have a DSL USB external modem.  It is roughly two years old.  Should I add an AP to it for my TR or should I get a wireless router?

I only have a desktop in my office and the TR.  Thats it.  Thanks for any advice.