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I'm in a house with 35 guys, and we have an ethernet network in the house connected to a high speed dsl connection.
Basically we have ethernet jacks in every room. Ethernet cable is run to a central location and connected with a couple switches. We have an router that lets everyone access the dsl connection and uses dhcp to automatically assign ip addresses. We also have a couple wireless-g gateways connected to the network so people can connect wirelessly.
Our network is a few years old but was done with cat5e cabling and we have 100mbit switches so the internal network is very fast.
The DSL connection we have is a 7mbit business class line that runs 200/month from verizon. Residential service is 1.5-3 mbits dsl or about 5mbits on cable about 50/month.
Better options are verizon's FIOS (fiber service - not widely available but runs up to 30mbits) or sometimes the university will hook you in to their network and you can get 100mbit or more connection from them.
If you have an internal ethernet network routed to a broadband connection, the biggest problem is going to be when people are using filesharing applications. These will make the internet slow for the entire house. Try and limit the use of p2p apps in the house or get people to turn off uploading as that is really what slows things down.
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