Both are significantly faster than a 256 kbit net connection, so you only need to worry about speed if you will also be connecting to a local network and need high speeds. Even then, the 11mbit connection of 802.11b is fine for the vast majority of users. Unless you are pushing really big files around the net, you won't notice it. Printing, smaller file copies, IM, etc will all feel pretty much the same with either technology. I don't know about India, but in the US, the price differential btween the two isn't very high, although finding an 802.11b only machine is getting more and more difficult. The WPA thing over WEP is valid, although it depends upon your installation and the prevalence of that kind of hacking in India. I have boxes which only support WEP, so I just leave the router on the outside of a firewall and leave it wide open. If my neighbours use by net connection, it doesn't bother me any, although I did enable MAC address filtering, which prevents casual use, although a hacker wouldn't have much difficulty with it. Get whatever you can afford. YOu can always sell i and buy something else later, if your needs change.
--sam