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I use a router and have had no worm's/virus' come in, It is very effective against broadcast worms (ones that look for bugs in the OS, )
However a software firewall has 1 thing routers don't. If you download a file, and run it and it's infected with x worm, that worm can now infect your entire network and broadcast out through the router and spread.
a software firewall can block all outbound traffic (or any non-authorized program) thus stopping the software from spreading to the remainder of the PC's on the network.
Routers are great if you know what you are downloading, I use AV on 1 of my 5 PC's and it scans all the HD's weekly, no worm has made it through my router (even with some ports forwarded to certain PC's)
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