Heh. I wouldn't use any unencrypted applications over that, especially instant messengers with no encryption enabled. Maybe if you had a VPN server set up externally on the net that you connect to, then that might work. Or Tor.
As for increasing signal strength, play around with the channels on your access point. By default almost all Linksys 802.11b/g routers come running on channel 6. You have 11 channels to choose from, 3 of which are non-overlapping (channel 1,6,11). So if a neighbor has an access point on channel 6, and you can pick it up, then your access point and his are colliding with each other, thus reducing signal quality, speed, etc. Change to channel 1 or 11, as those are non-overlapping to channel 6.
You can also get higher quality antennas that you replace the standard rubber ducky antenna that come with most wireless routers/access points. Linksys makes a
7dBi antenna kit that fits most of their wireless routers/access points which will increase the signal strength and coverage a bunch. For every +3dBi increase of signal strength, you double the power.
Finally if you load custom firmware onto the access point/router, most of the custom firmwares allow you to boost the transmit power from a default low level to a higher level. However, boosting the power also brings side-effects such as increasing the possibility of interference from cordless phones (ones running in 2.4ghz), older microwave ovens, and your neighbor's phones/wireless networks.