Gigabit Ethernet Installation question

Hi there,
I'm using a very old Dell PC plugged into on my home network as a file
server. I basically got a windows 98 machine, installed a 500GB hard
drive in it and left it on all day and night. It's working great but
I'd like to boost speed a little.

Here's what I've got:
D-Link DIR-655 Xtreme N Gigabit
plugged into my old ZyXEL Prestige 660HW
(using it as a DSL modem cause I didnt realise there was no modem in
the D-Link!)

Then on my Desktop I have:
Asus P5NE-SLI Motherboard, 8 Channel Sound, Gigabit LAN, 6 USB2

My Question is:
What would it take to get gigabit ethernet speed on this setup and
will the speed increase be worth the effort/price tag?
Also, while I'm in the area, is there any way I can bypass the ZyXel
modem in the setup above? Could I install a PCI modem on the file
server PC maybe? I'd prefer not to have so many things plugged in all
the time and the number of flashing lights in the room now would make
your head spin!

Thanks for any help!
Ciarán

PS: One last question: I've heard unencrypted wifi setups are far
fasted than WPA encrypted but is there any safe way to implement this?
I'm a friendly enough neighbourhood so just a very basic level of
security would do.
.

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