I think you will be protected from your house mates but that's about it. Somebody that has a wireless connect could reach your computer and they could reach your housemates.
Why do I say this? Well let's say (according to your pic) that the 1st floor is 192.168.0.0/24, the second floor is 192.168.1.0/24 and the wireless is 192.168.2.0/24.
Now for this to work your wireless AP will need an IP address from the 1st floor. Let's say 192.168.1.4. All the wireless clients will have .2.x address. When they go out to the internet their address will be translated from a .2.x address to .1.4 . At that point they are on your network. If they are requesting something on your network then they have access. If they are requesting something on the internet, then they go right on to the next router.
Same situation for you house mates...... You'll have full access to your housemates as well. You are protected from them however. I've never used the linksys you have but I'm willing to be they cannot be configured to protect against something like that.
How to fix it:
1. You be apart of you house mates network. You config would be
Code:
cable modem
|
\/
Router01
| |
\/ \/
Router2 Router3
you and your mates will all be on Router2 and the wireless will be router3
2. Buy additional router and use confi above and stick router4 along with 2 and 3. You will be '2', your mates will be '3', and wireless will be '4'.
3. Dumpster dive for old computer, get somemore nics and put linux on it and make it your primary router. You could probably use this method to institute some sort of bandwidth regulation as well.