See the
OpenWRT site for routers which can be flashed with an enhanced linux firmware. If you go that way you should also look at
X-WRT for some nice enhancements.
I have used an Asus wl-500g Premium and it works fine. It's nice to have the USB ports on there for attaching an HD or even a webcam, both of which work with the stock firmware.
The Linksys WRT54G is also a popular choice. The current standard version does not run linux, but there is a 'GL' version which does. Interface is a bit more polished than the Asus, but not as many features (at least in the versions I compared).