Router vs Network

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Arbitus

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What are the advantages and disadvantages of using a router to share the internet and the advantages and disadvantages of using windows network to share the internet? I currently have a router because a family friend gave it to us (before I knew you could use windows to share the internet) so that's what I'm currently using to put 4 computers including mine online.

If I use windows networking to share it, do I need a hub?

Is using a router illegal? I've heard that it is.
 
Router : Will allow your machines to see and talk to eachother. ex: sharing files and folders.

ICS : You can share the internet this way however it is more of a pain.

Routers are not "Illegal" your ISP may not like the fact that you have 5 machines using 1 connection however ICS (Internet Connection Sharing) does the same thing.

Most ISP's have come to terms that users use routers. If you happen to call for Connection support, don't just tell them you have a router. Wait until they atleast ask you if your machine is behind a router.
 
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