The Cisco 1700 series is a good choice.
Normally, I would recommend getting the CSU/DSU module inside the router (WIC-1DSU-T1). Then a straight ethernet patch cord hooks you up to the fT1.
You should make sure your 1720 comes with at least IOS 12.1. This supports NA and PAT.
You ask if you should use the Firewall IOS. You have to provide that answer. If the "WAN" connection is to the Internet, and if you are not going to be implementing a REAL FIREWALL (e.g., Cisco PIX) behind this router, then the answer is YES. And when you do so, make sure your 1720 has at least 20 MB Ram.
Your LAN connection also needs to be considered. Assuming an Ethernet, then another patch cord into your LAN's switch or hub get's you running.
The router ships with a cable to plug into the console port for initial configuration. You should download Config Maker (if it doesn't ship with the router) from the Cisco website to get an initial config. Then you can manually massage it from there.
By the way, the very best source for Cisco info is CCO.CISCO.COM. You can access a fair bit of information without signing on. Alternatively, you can ask your Cisco reseller to set you up with a CCO account.