Disabling the SSID means that you are keeping the AP from Broadcasting the
SSID. WNIC's use this broadcast to list available networks. Many wireless
interfaces will not list a network as available if the SSID is not
broadcast. This is a security feature which can help reduce unauthorized
access into your WLAN due to the fact that, in order to logon, you have to
know what the SSID is.
When you setup up wireless networking in Windows, you'll enter the SSID of
the WAP you wish to connect to. Once you've entered this, Windows will seek
it out, rather than depend on the broadcast. Therefore, disabling the
setting is recommended and should have no detrimental effect on your ability
to logon to your AP (as, of course, you already know what your SSID is.)
Disabling the broadcast is but one step in securing your wireless network.
In addition, you should enable encryption (at a minimum, use 128-bit WEP,
but use WPA if all your devices support it), rename the default SSID, change
the default admin password, and set a passphrase that is strong (ie, at
*least* 8 characters, preferably more, no dictionary words, a combination of
upper case, lower case, symbols and numbers.) Remember, you only need to
enter the passphrase once, so make it complicated and use notepad to
copy/paste it to ease in transferring it. Lastly, you should periodically
change your SSID and passphrase.
None of this will make your WLAN perfectly secure, but it goes a long way.