Some stupid router/modem questions

befuddled

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Just got a new PC with windows 7. My old PC which I'm using to type this has XP and a very old BT voyager 100 modem and no router. When I tried to connect to the internet with my new PC it wouldn't work so I phoned AOL and they are sending me a wireless router foc because my old modem doesn't work with Windows 7. Being an old git and not understanding these things I looked at youtube to see how to connect things up. Here come the stupid questions.

On you tube it became apparent that both a router and a modem would be necessary for internet connection. Is this correct as it seems like a backward step as I would need two pieces of equipment where one used to do the job. If it is correct would my old modem now become useable with Windows 7 when connected up to a router.

Next stupid question, can I connect a wireless router up using wires unless that's daft even if it's possible. Thanks for any non technical answers !!!!!!!!!!!!!
 
AOL will supply an ADSL router, which has it's own built in ADSL modem.

You will be able to connect the router to your PC using an ethernet cable (they'll include a cable with the router).
 

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