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Ok your house sounds like it has been prewired for a data network. The standard practice is to run all of the cat 5 to a central location, you may find it in your utility room or near your electrical panel. Once you find that location you need to see if the cat 5 is going into a network switch/hub or if the wires are just hanging there. If you find the cat 5 but don't see a Switch/hub then I suggest getting a router with a built-in firewall.
If you don't want to see the modem around the house then put the modem down with your Switch/Hub in the utility room.
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Now, Where is your problem?
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