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We use Linksys WRT54GS routers. Screw the mounting bracket to the top of a rack and mount it upside down. In this position it is exactly 1 rack space high and fills half a rack unit.

Make sure you re-flash the router with the ddwrt firmware. This enables it to do all sorts of clever tricks including becoming a DHCP server. That way laptops can be used on the wired or wireless i-live network without needing to manually assign them an IP address.