I'm surprised Chris hasn't jumped at this one yet, so I'll point you in that direction in the meantime

Have a look at LSO - Learn Security Online at learnsecurityonline.com. They host some wargames.

As for setting up a lab, you'll need (at the least) a victim computer and an attacker computer. Just think of what you'd be attacking in the real world, and what you'd use to do that, and you should have your answer. I'd recommend at least a Windows client, Windows Server, and a couple of various linux distributions.

Thanks for your answers, I've checked out LSO and subscribed to their newsletter and it seems like a good site, but I'll also see if I can set up some kind of hacklab. Or secretly use the schools network 

dannioni,

If you don't have the resources to set up your own lab, or even if you do, check out these sites:

www.hackthissite.org --> lots of challenges including web app, application/crackme's, coding, logic, etc...

www.rootthisbox.org -->various boxes contributed by members to hack.

www.smashthestack.org --> high quality challenges including reversing, overflows. etc...

and of course the LSO root wars.

Cheers,
Dean

OHHH man I forgot completely about rootthisbox!
dang thanks for reminding me.
But yeah just grab a cheapo wireless router and a creapo computer with XP on it (because, honestly, most all people use XP, if they use linux the only thing you are going to steal are hack tools to get into XP )

That's already been posted... the IP belongs to Learn Security Online.

have anyone passed level4?

If you are into this as a career, and will be doing this professionally I suggest that you invest your time in having a virtual machine setup with both Linux, and windows, you will use this later to test expliots, and penetation techniques, and this will be your safe haven not breaking any laws, or inviting bad people to your machine while you have not gained enough skills to secure your self yet. check de-ice.net pen-test live cds, and there is a course covering it in http://heorot.net/livecds/, also they are some free videos will be available soon as they promise. other than that offensive security do set up a virtual lab as well as sans if you take ondemand courses. the bottom line if you create your own lab it is a skill investment by itself