Screen door security
There are some useful administrative benefits to doing this. A screen door can keep out pesky mosquitoes who may have somehow stumbled past (or been allowed past) the vault doors. For example, my teenage son's girlfriend has our wireless key programmed into her laptop. I don't expect her to start hacking our network, but the fact that our IP addrs are different from the ones she uses at school and at her dorm makes misidentification of certain non-dns referenced resources unlikely.
As Tim alluded earlier, another benefit to having a separate subnet which differs from those typically configured into consumer products is it prevents those products from "taking over" aspects of your network as soon as you plug them in. For example, you buy a wireless router to use as an access point. You plug it in, hoping to configure it before using it. The router has a DHCP server turned on by default and it immediately fouls up the DHCP requests for a server you already have on your net. Among other problems, your network nodes one by one go offline over the course of the next two to four weeks while you're trying to figure out what the heck happened. I could go on and on with scenarios that can be caused by a rogue DHCP server.
Another scenario: You have your network set up to the default subnet of 192.168.0.0. One of your kids or a visitor plugs in another wireless access point that's configured by default for the subnet you're using and has no security set up. Instant hole into your network that may be inadvertently used by your neighbors without their even realizing it. Until you have a chance to discover this rogue AP, at least the different subnet will prevent people from **unintentionally** using your bandwidth or accessing unsecured devices on your net. And let's face it, in this scenario the unintentional user may well be as dangerous as the sniffer-endowed hacker bent on destroying or exploiting your network. At least obscuring your IP range gives you *some* protection.
If you do this, be sure to use one of the subnets set aside for private network use. They are:
10.0.0.0 - 10.255.255.255 (mask=255.0.0.0)
172.16.0.0 - 172.31.255.255 (mask=255.240.0.0)
192.168.0.0 - 192.168.255.255 (mask=255.255.0.0)
The masks listed are the broadest mask you should use with each subnet. Using more restrictive masks to create smaller subnets (like the commonly used 192.168.1.0 with mask 255.255.255.0) is certainly allowed and can make network management easier. In fact, many consumer-grade products won't even work with masks larger than 255.255.255.0.
Why use only these private subnets? You could use another subnet, like 169.226.0.0 (mask=255.255.0.0), but by using that subnet you are risking being unable to access internet content (or any other services) provided by the true owner of that subnet, the State University of New York. Requests to the subnet you've set up never get outside of your home network (that's part of the router's job--to route requests for your private network internally and requests to any other network externally). The private subnets listed above have no owner--they are intentionally set aside for NAT use--so these subnets are guaranteed not to be present on the internet in any way shape or form. That's why they are called "private."
For more info check out:
http://compnetworking.about.com/od/workingwithipaddresses/l/aa043000b.htm
Hope this helps.
Grandin