Are there any SOHO class wireless routers that are capable of encryption at layer 2?
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You can use IPsec (even with L2TP) with OpenWRT. It runs on a large number of SOHO routers. (List of supported devices.) A short guide about L2TP+IPsec on OpenWRT. But you should know that according to some benchmarks you should only get 3 Mb/s with an average router. Some routers have hardware assistance for encryption (e.g. the WRVS4400N). If you need performance you should choose one of them. | ||||
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There are some relatively cheap routers like the WRV54G if you'd like something completely packaged. As Kovbal said, chances are you can take a current wireless router you have and do the same with OpenWRT/DD-WRT and OpenVPN/etc if that's a route you're interested in. | |||
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