Separate wireless from wired- whataya think?

I've read everything I can find on this forum concerning my problem. I think I have it figured out, but would like to make sure before I start spending money.

My current setup is this: Internet > Actiontec modem/router > Netgear switch > 6 pc's running xp pro
The Actiontec modem/router is a combo dsl modem/4 port wired router/wireless router. It was provided by my ISP.

For security purposes, I need to set it up so wireless guests can access the internet but can't access my network of wired computers.

I think I have come up with 2 possible solutions. Please tell me which is easier and/or better or correct me where I am wrong:

Solution1: Use the Actiontec modem/router for the guest network. Use only the modem and wireless routing capabilities of this router. Buy a second router and wire it behind the Actiontec. Give the new router a different ip. Hook my switch up to the new router. Hook my network pc's to the switch. This would put the wired network on its own subnet thus separating it from the wireless guest users (I think).

Solution 2: Use the Actiontec just as a modem (turn off its wireless). Buy a new router that offers a wireless guest zone function. Wire the new router to the Actiontec. Hook my switch up to the new router. Hook my wired pc's to the switch. I could then put all wireless activity on the guest subnet thus protecting my wired network (I think).

Both of these may be completely wrong. If so, please help me out.
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  1. here is the easiest and fasted option and it will not effect your current setup.

    Solution3: Just connect a second router to the Actiontec and use it as a guest network. I would log into the new router, setup you wireless security using WPA2 mode, and change the LAN IP to before connecting it.
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