It depends on your devices (laptops, iPhones, notepads, etc.), some may support WPA2-PSK in which case you'll need to select the second choice from the bottom - both WPA-PSK (TKIP) & WPA2-PSK (AES). I would suggest your using this setting. If your device supports WPA2-PSK but is still connecting using WPA-PSK after you made the cnfg change, on your device you may need to remove and rediscover your network for it to work.
ATT u-Verse is real nice but their wireless routers don't have all the features available to the home administrator like other home network routers (Netgear, Linksys, etc.)
Keep if simple if you're not sure what your doing.
Change the default wireless password for your network to something more challenging. (example: f!ghTb@c7)
You may also want to change the admin password to your router as well!
WPS is disabled - good
You could change your SSID name if you like to make you wireless network name unique.
There are other simple settings you can tweak like changing the private network range which I always do.
There are advanced settings available like MAC filtering, etc. but I would avoid this unless you really know what your doing. Lot's of good suggestions on this thread, many advanced but again if your not sure, keep it simple.
"Fish to Live, Live to Hunt"