from what I've read:
If I am on a wireless network without encryption, any other computer connected to that same network could easily (with right tools & knowledge) intercept any traffic I send/receive.
If I am on a wpa2-psk wireless network, the situation is better, but another computer connected to that same network could still (with right knowledge and tools, and capturing my initial 4-way handshake) intercept and decrypt any traffic I send/receive.
My question is: does enabling "wireless isolation" option in the access point/wireless router change this state of things? does it stop someone to be able to sniff and decrypt my traffic?
[EDIT:] This post clarifies how someone that is connected to a wpa2-psk network (and therefore knows the pre shared key) could sniff and decrypt traffic intended for another computer of the same network: Are WPA2 connections with a shared key secure?