MM77,
As Sho says, range is extremely important. It allows you to access entire sectors you normally would be closed off from. There are two ways to increase it: (a) in your skill picks, you can choose to increase range by +1; (b) certain ships have greater ranges than others. For example, this is the greatest difference between a Frigate and a BattleHammer. (Both are identical except for HP's and Range.)
A very good strategy is to spend the points on increased range and build BattleHammers as your first Fleet (I am indebted to Horatio for pointing this out). You can take contested sectors without too much trouble, and force an AI Empire into surrender, which benefits you immensely mid-game on a large/huge map.
~SDC~