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You will need to purchase a xbox live silver or gold credit. You will also need to connect your xbox to a router or switch that has access to the Internet. If you do not have a router/switch near by your xbox you can purchase a wireless gaming adapter to connect your xbox wirelessly to your wireless router.
It is possible that the Xbox will be unable to pick up the wireless signal being transmitted by your gateway because the signal is too weak.
The connection speed of your internet has nothing to do with the strength of the signal. The best way to test this would be to try to connect to your wireless internet on a laptop while sitting near the xbox. If you cannot, you will know that the signal isn't powerful enough to reach that location.
There are three common options to amplifying your signal if necessary.
1) Purchase a High-gain antenna for your wireless gateway 2) Purchase a wireless repeater 3) Purchase a new router/gateway with a longer range capability. A "Wireless N" enabled router would be optimal for this application.
Turn off Xbox 360 console and network hardware (for example, your modem and router).Wait 30 seconds.
Turn on your modem and wait a minute.Turn on the next piece of hardware (for example, your router) and wait another minute.Turn on your Xbox 360 console.On your console, go to My Xbox, and then select System Settings.
Select Network Settings.
Select Wired Network or your wireless network if you are prompted to do so.
Select Test Xbox LIVE Connection.If Xbox LIVE performance is still slow, try the next solution.
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.