Proper authenticator > vritual one, but something is better than nothing.
End of the day, though, computer security amounts to a lot. I never had any hack scares ever, even before I got my authenticator, and all I ever used was:
*Firefox
*AdBlockPlus addon for Firefox
*Flashblock addon for Firefox
*Spybot Search & Destroy, with the TeaTimer module always active
*Ccleaner
*Common sense
Seriously, that's it. There's some other good stuff like NoScript for Firefox, and making sure your Flash is always up to date helps a helluva lot. Flashblock prevents Flash elements in webpages from playing without either me clicking on them to let them run, or me allowing all Flash elements on that site to run. Combine that with ABP to outright remove adverts from some pages and the way it prevents a lot of nasty stuff showing up in the first place, and there's little that can even get onto the machine. Spybot scans rarely return any nasties (and yes, I keep it up to date), and anything that DOES slip through is caught by TeaTimer before it can run.
AVG is good if you need a virus guard as well, but I personally haven't used it for over four years now, but it'd still be my go-to choice.
Again, though... authenticator. Get one if you can, but don't shirk general PC security even if you do get one. Can never be too safe.