Thanks for your response, but I'm still quite confused.
Lets forget about the dialup option for now, and only consider the options for LAN, and DSL/Cable.
You said if I have a direct internet connection on my router, to click "DSL", not "LAN".
However, if my computer is connected to a router, than I am on a "LAN", correct?
I need to understand why I would choose LAN instead of DSL/Cable, and what the resulting difference is between the two choices.