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It's actually pretty easy to set up the encryption that comes with these things, which is called WEP (Wired Equivalence Protection). You have to make up your own key, so it's not on by default, but it's easy to do. It's not the best encryption ever, but it'll keep your neighbors out. The Orinoco Gold cards have even better encryption available, if you're concerned, though.

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Actually, the Gold cards do 64-bit and 128-bit WEP. The Silver cards do only 64-bit WEP.

Cisco cards and access points can use EAP/LEAP, which is basically RADIUS authentication and a bit of added trickery.

And, as I mentioned earlier, WEP has been completely cracked. I'm giving a talk in April on a handheld device I put together that is trivially concelable and can crack WEP.