TKIP wireless encryption has been cracked. Use WPA2 AES encryption instead.
According to this Computerworld article, wireless WPA encryption using TKIP has been cracked.
What does this mean to the average user?
When you set up a wireless network, by default there is no encryption. Out of the box, anyone can connect to your wireless network. This is bad, and when setting up wireless you should always encrypt the connection. This makes sure that only those you allow can access your network.
There are many different ways your wireless can be protected. At the time of this writing, the best choice is to use “WPA2 AES encryption”. However, right next to that menu choice is often found “WPA2 TKIP” encryption. This latter type is the kind that has been cracked. Don’t use it. If you’re using this kind of wireless encryption, change it from TKIP to AES.
The summary: Do not use TKIP encryption. AES encryption has not yet been cracked, and is the best choice to use for wireless encryption.