Standard off-the-shelf wireless is not secure. Period.
When you say that you find this 'frightening' what is the possible ramification you are thinking of? Are you running a bank? If so, then you should buy some proper wireless (see Brad Ackerman's post)...
It'll take more than a PC enthusiast to 'capture' the packets, and a relatively experienced hacker to actually put the packets together into something useful. In short, regardless of what you read in the media, an experienced individual would have to work very hard to get your data into a usable form and either cause any damage/use the data against you. Don't let paranoia get to you!!
However...
A cheap solution is to put the wireless router 'outside' your network - i.e. in the DMZ part of your router (assuming it has one) - and then VPN into the inside of your network - ensuring that you/Windows is encrypting traffic over the VPN - not all do. That would give you security - just not in the way/spirit that WEP/WPA was intended!!
Mike