NB,
Definately leave your modem on all the time, especially with DSL there are issues with shutting it off. What I would suggest is getting a router to put between your modem and the computer. especially if you have plans of having more then on computer or getting a laptop with Wifi. You can get a fairly decent wireless router for 40 - 60 dollars and setting them up is fairly straight forward.
As for people getting onto your computer.... the router helps with that. But if you don't want to go that way, just get a good firewall software.... and set the firewall level where you feel comfortable. Note I wouldn't just use the Microsoft firewall.... I personally don't think it works at all....
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Life is about how much time you can spend relaxing... I do it on an island that isn't really an island.....
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