Not sure how I came about this one again, but both of you are right in a way. For the sake of getting good information posted, I'm going to quickly say this:
WEP can still keep the majority of people who are not "tech savvy" from accessing your home network. Anyone with time, the ability to read, and Internet can figure out in a few days how to get past a WEP key.
WEP is considered unsecure by many major security organizations. (Not going to go into detail)
If all you have is WEP, use it. It is like locking the bathroom door. The funny thing is, as it always seems, you don't typically need much to unlock the bathroom door from the outside -- just a fingernail-file.
It's probably time to get a new router. (Or new wifi adapters, if that's the problem).
Someday, WPA will be just as unsecure as WEP. It just happens.
-- I just didn't want a confusing debate with no mediated closure.