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In theory you should be able to "share" your internet connection. I use a Linksys WRT54GS wireless router and I have a Linksys Game adapter on my son's 360. He has not complained about lag or slow server times unless other intensive bandwidth is being used.
Ok, all you have to do when it comes to buying a wireless reciever is to buy the microsoft brand one made for xbox live. (100 dollars) Once you have this;
1. turn of the xbox 360 and plug in the adapter.
2.turn on the 360 and go to the network settings option
3. this should bring up a page offering a view of you ip address and ect., go to the bottom link (3rd), and select it.
4. this should give you the option to select your wireless network, then connect to it and test the xbox live connection.
5. Once you pass the test, continue to hit "b" until you are back at the very main menu and begin playing!
ok, this is what i have to do whith normal computers.
(the xbox is the same)
(make sure youve got a crossover cable (red one))
1.turn on ur xbox
2.goto the system tab
3.goto Network settings
6.change it to manual
8.type in 192.168.1.2
10. type in 255.0.0.0
12.Type in 192.168.1.1
On your computer
3.Network and Sharing Center
4.manage network connections (on side Bar)
5. right click on Local Area Connection
6. go propertys
7. doble click on tcp/ip v4
8. click use the following ip addess
9. ip address
13. default gateway
15. click ok
16. click ok
17. right click wireless network
18. goto propertys
19. got the sharing tab
20. tick the only box you can
21. press ok
22. your done!
phew that was a long one.
hope this helps.
i had the same problem buddy. The problem might be that you hacve another system on the wireless network that uses that same IP address. This can cause a conflict that will prevent the xbox from logging on. Try deactivating other systems on the network to see if thats the problem