What wireless encryption to choose?

I'm going to set up a home wireless/wired network using a Linksys WRT54GC
router. There are various wireless encryption choices: WEP, WPA, Personal,
TKIP, AES, PSK2.

How to choose?

Naturally, I want strong security, but I don't want to sacrifice
performance significantly. Also, I don't want to sacrifice stability: if
one of the choices can get flaky or needs regular tweaking, it's not for
me.

Initially, there's just one wireless and one wired PC. Wireless usage is
moderate-intensity Internet access, plus some low intensity file/printer
sharing. Basic stuff.

Also, would you suggest MAC address filtering since the network is so
small? That might make encryption less important, but is MAC filtering easy
to break by intruders?

Any other suggestions for configuration settings?