WPA is a better security protocol to keep the baddies out. Better encryption, stronger keys, etc. That being said, I only run WEP in my house, since I'm out in the country, and you can't pick up my Wi-Fi network from the road due to location in my house.
If possible, run WPA2, as long as all of your Wi-Fi enabled devices can take it. If you alarm clock is older, you'll probably have to run WEP. I'd check the manual/manufacturers site of the alarm clock to see what works.
Technically, you could run two networks in the house, one off of the Bell 2Wire with WEP for the clock (with only 1 DHCP address in the scope, so even if it's 'hacked' they can't go anywhere), and then the WPA2 for everything else off the Dlink.
If possible, run WPA2, as long as all of your Wi-Fi enabled devices can take it. If you alarm clock is older, you'll probably have to run WEP. I'd check the manual/manufacturers site of the alarm clock to see what works.
Technically, you could run two networks in the house, one off of the Bell 2Wire with WEP for the clock (with only 1 DHCP address in the scope, so even if it's 'hacked' they can't go anywhere), and then the WPA2 for everything else off the Dlink.