I am in fact doing this. I am using a Netgear WGR614 11G router and a mix of Netgear 11G USB adaptors, Intel Centrino 11G laptops, and Netgear PCMCIA network adaptors to share my DSL connection with my next door neighbor. I have a total of about 5 machines connecting to my router via wireless, although never all five at the same time. This works great mainly because my home office where my Netgear router resides happens to be the room closest to my neighbor's house. So range has not been an issue. I also think Netgear is one of the better home network vendors out there and that helps with the range as well. I have had this set up for at least a year now and all is working terrific.
Of course your situation may be different since there are alot of things that can affect your range from the materials your house is made of, the frequency you use for your network, the placement of your router, etc. So you won't know unless you try it out.
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