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If it isn't already then connect your Xbox to the internet through an ethernet cable or wireless adapter, and sign up for Xbox live by going to my Xbox. You don't have to pay, but you won't be able to play online without paying, but updates should still be free. If you have a windows live account you can use that to get onto Xbox live by recovering your Gamertag, which you can do by pushing the guide button on your controller.
Well depending on when you were trying they may have passed but the amount of information that was trying to run through your internet may not have been able to go through so in turn that may be the cause is your internet, if that is not the case and you have restarted the modem and everything I would call 1 800 4 MY XBOX and get some help with the xbox live they are very helpful.
It should hook up but Xbox live is having a ton of issues basically xboxlive is down and wont be back up for a while. you can go to www.xboxlive.com and search under status then go to support this will let you know when you can connect back up to xbox live.
If you problem isnt with xboxlive then you will need to get a wireless router. Then go through the steps to set up a wireless network and then set your xbox to that wireless network.