802.11 is the name of the IEEE group that originally oversaw the development of wireless standards.
Current Wireless Standards (2006)
802.11b
This is the oldest (July 1999) and currently the most widely used wireless standard. Its maximum speed is 11 mbps while the lowest speed is 1 mbps. The equipment implementing 802.11b starts at 11 mpbs to communicate. If it has problems it tries 5.5 mbps. Then 2. Then 1.A typical cable or DSL connection is 4 mbps. Therefore, one is (ideally) limited by cable/DSL connection; not wireless. The maximum range is 150 feet indoors and 300 feet outdoors but realistically expect about half that indoors because of obstructions such as walls.
802.11a
This standard was also created in 1999. It has speeds up to 54 mpbs but is not compatible with 802.11b or 802.11g. Maximum range is half of 802.11b (75 feet). It has a harder time penetrating walls and other structures.
802.11g
Available around 2003. Faster than 80211.b. Its maximum speed is 54 mpbs. It is compatible with 802.11b which means if your connection supports 802.11g, any 802.11b can connect to it but will only get the maximum speed of 802.11b. Maximum range is the same as 802.11b. 802.11g (and 802.11b) is susceptible to interference from microwaves and some cordless phones (not cellphones).
Bluetooth
Not generally used for wireless networks. Range is about 35 feet with speeds up to 1 mbps. Used on many wireless printers. It has same interference problems as 802.11b.
The best bet these days is 802.11g.
Future Wireless Standards
802.11n - Expect products mid-2007 though some manufacturers may upgrade earlier. The standard is still being developed but is expected to be ratified in early 2007. The current goal is ten times the 802.11g speed and a broader range. 802.11n is based on MIMO technology so you may see 802.11n referred to as MIMO.
Doug