Selecting Between Infrastructure and Ad Hoc Wireless Modes

Devices in a wireless network are set up to either communicate indirectly through a central place — an access point — or directly, one to the other. The first is called "Infrastructure Mode" and the other is called "Ad Hoc" mode (it's also called peer-to-peer). You may select either for your wireless network, however all devices communicating directly with each other must use the same mode. I.e, if you work in a business with an existing wireless network, the choice is already made for you.
Here are key differences between the modes.
Because Ad Hoc Mode does not require an access point, it's easier to set up, especially in a small or temporary network.
Infrastructure takes advantage of the high power of an access point to cover wide areas. Ad Hoc Mode connections are limited, for example between two laptops, to the power available in the laptops.
Because the network layout (the network topology) in Ad Hoc Mode changes regularly, system resources are taken just to maintain connectivity.
As the Ad Hoc topology changes, throughput and range will change, sometimes in unanticipated ways. New users will have an easier time learning wireless strengths and weaknesses with Infrastructure Mode, and therefore the NETGEAR Installation Guides focus on it.
In an Ad Hoc network with many computers, the amount of interference for all computers will go up, since each is trying to use the same frequency channel.
In Ad Hoc Mode, chains of computers will connect to pass your data, if your computer is not directly in range. On the other hand, you do not have control over the path your data takes. The automatic configuration routines may send your data through several computers, causing significant network delays.