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What you can do is plus a wireless access point into the hub - or the better solution is to get a wireless router and hook that straight into the DSL modem, and then from there, you'll have several connections (I think 4 or 8) to hook Cat5 up directly, plus a wireless AP built in to connect your downstairs computers to.
If you find you need more wired connections, you can always plug the hub into the router (remember that you'll need a crossover cable for this) and just hook more up to that.
As for how the DSL modem works, I'd pay attention to the people above me - I've never used DSL - just speaking through practical networking knowledge.
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Eat antimatter, Posleen-boy!
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