A friend of mine told me that the iMacs have a built-in Wireless ROUTER in them. That way I woulc plug a network cable from my modem into my iMac and then use the iMac to transmit a signal to my macbook. Is this true or is the iMac only capable of connecting to a wireless network rather than creating one. chase
It doesn't have a router per se. However you can share a wired connection over the wireless connection using internet sharing. There are issues with this though regarding wireless security. I'm not on my mac right now so i can't help you out with specifics. Maybe someone else can.
Ye you can. Turn on Internet sharing in System Preferences->Sharing. You can set it up to use a secure wireless connecton, if you so wish.