If so, what modem or modem/router do you have? Is it better to have a modem and then buy your own router for this? Or is it better to have their 2wire solution? Will it make much difference to have the 1701HG or the 2701HG? Anyone care to comment?

I always figured that it all comes down to support. If you use theirs, do you have to pay extra? Is it warranted by them, so if it breaks a year from now will they replace it for free? That's always the risk of buying your own equipment, if its out of warranty, you need to buy another one. I do not know how much the products are, and I don't have AT&T but have worked at ISPs in the past.