windows firewall is definitely inadequate, it monitors traffic in one direction only, if a trojan or virus gets into your system there is nothing stopping it from contacting an outside site, possibly with personal information from your computer, ie credit card details, passwords etc.
if you have a router set up and it has a hardware firewall installed that is sufficient you don't really need a software one, if you are not connected through a router with a firewall you need a software firewall, zonealarm etc.
the windows one is not really fit for purpose.

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