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if you dont have a router, you can either have the xbox or the pc conneted to the internet, not both. you have to have an eithernet cord or a usb 2.0 high speed usb chord that goes directly from the xbox to the modem. you cannot go from the modem to the computer then to the xbox.
In order to connect your XBOX 360 to your laptop (if the laptop is connected via dial-up), you'll need a cross-over ethernet cable. It's a special type of ethernet cable, which is typically the same price as a regular ethernet cable, but it allows two devices (in your case) to communicate with each other. Then, you'll need to configure your laptop to allow incoming connections via your Control Panel -> Internet Connections preferences.
Connect it to your router with an ethernet cable.
Make sure the router is setup correctly to your modem, if you can
connect all your devices by ethernet cable to the internet then it's
set. If you are using a wireless connection and if it asks for the WEP or
WPA key, make sure that you are entering the correct encryption key.
You may want to call your router manufacturer to know the correct key
for the wireless connection. FYI, it will say that the wireless network
is connected but it will still fail the IP Address.
If you have a wired connection and the IP Address or DNS failed, I
suggest you to call your Internet Service Provider to check for the
Internet connection and obtain these (static IP address, subnet mask,
default gateway, primary DNS server and secondary DNS server). If your
Internet is okay, enter the IP settings manually on the console (System
> Network Settings > Edit Settings > IP settings).
Contact the people you get your internet from. tell them you need to register your xbox. I have the DNS issues when i visit my girlfriend at college since they dont like to keep the Download speed high for the students. always fails