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An MTU is the largest physical packet size, measure in Bytes that a network is capable of transmitting.. If messages are larger than the MTU they are divided into smaller packets before they can be sent. All networks have different MTU's which the owner of the network set at what they want to set it at. 576 is a very common MTU if you connect through PPP. 1500 is the most common MTU for Ethernet connections. The Xbox Live system requires your network to have a certain Maximum Transmission Unit (MTU). MTU values are important to the performance of online games. If this test fails, you can adjust the MTU setting on your network router or equivalent device to resolve the problem. Xbox live requires the network you use to have a maximum MTU. This is key to online gamesing. If the MTU fails then you have to adjust the router you are using. If you cannot access the router to adjust the MTU the you will not be able to play online games.
Access the routers setup page by typing 192.168.1.1 (ip address of the router) on the address bar on IE.
then on basic setup page at the bottom part of the page you will see MTU normally its on auto,
to change the value set it to manual. ask your isp what is their prefferred value for the mtu you can go as high as 1300 to 1500.
I've had the same problem and struggled with it for hours... If your on the Comcast network, there seems to be problems with adjusting MTU. I have a Dell 2350 router and that particular router cannot have MTU modified. Also, sometimes the MTU is effected by computers or phones in the house being on. One more suggestion, try a gaming router. Good ones start at 90 dollars, somewhat expencive but well worth it.