I am getting internet signal if I plug in the cord from the wireless router to the laptop. The laptop says we have signal and we are connected to our home network but then we cannot use the internet. It is as though the wireless router just is putting out a signal but no accual internet.

Having a wireless Internet signal in your home allows multiple devices to use the same Internet connection without having to run lengths of Ethernet cable to each device. Given that the wireless network is transmitted over the air, the consistency of your Internet connection depends on the strength of the wireless signal. If wireless signal strength is not strong enough to give you a consistent Internet connection, there are a few simple steps for finding the problem and improving your signal strength.

Reset all devices. The majority of Internet issues, including poor wireless signal strength, are very often solved by a simple power cycle of all the devices in the network. Locate the power cords of both your modem and your wireless router and remove them (if you use a modem/router combination, simply unplug the power to that device). Leave them unplugged for a full 30 seconds, plug them back in and restart your computer. When your computer fully reboots, check your wireless signal strength to see if it has improved. If it has not, further troubleshooting is required. Move your computer closer to your router, or your router closer to your computer. Wireless routers do not have unlimited range. One reason your computer may be getting a weak signal strength from your wireless network could be because your computer is simply outside of the router's range. Typically, ISPs (Internet Service Providers) will install your modem in one specific location in the house and the modem will not work at other locations, so moving the modem or modem/router combination may not be a possibility. If this is the case, you may need to move the computer to a location that is within the range of the wireless router's broadcast. If you still get poor signal strength, your router may be experiencing a malfunction. Contact the technical support department of your router manufacturer. Router malfunctions often are not the result of a bad or broken router, but of something much simpler, such as the router's needing a firmware upgrade or an incorrect setting on the router's internal setup. If your router manufacturer is unable to improve your wireless signal strength, it may be time to purchase a new router. Purchase a new router. Wireless routers are priced in part based on how widely their wireless signal broadcasts (in other words, the more expensive the router you buy, the larger a wireless signal the router will broadcast). Included in the packaging of each wireless router is the approximated range, in square footage, of that router's wireless network. A good rule of thumb is to know the square footage of your house and buy a router that can accommodate that square footage. That way, as long as the router is functioning properly, you will have strong wireless signal strength throughout your entire home. Hope this helps.

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There can be several things that affect wireless connections. Please click on this link and follow my instructions for possible fixes.
http://www.fixya.com/support/r9400992-things_affect_wireless_router_signals

It can take up to 2-5 minutes before your router starts broadcasting a wireless signal and for the xbox to be able to connect to it, turn your xbox off and the router wait a minute then turn your wireless router on, wait a further few minutes and turn your xbox on and try using the wireless connection

I suggest doing a power cycle of your modem and router.
Unplug your modem and router.
Then plug your modem back in and wait for it to boot up.
Plug your router back in and then you should have a proper wireless connection for your netbook.

Use the network setup wizard to connect to your network, and the internet. Unless you did this already.
You can get the wizard from Control Panel, Network ... , Connect to a Network. If wired you won't need key, it's for wireless only.

Yo did not say what OS, so info is a little generic.
Hope this helps.

1)If internet light not on then login to router and check the summary!!!and try to diagnose the test which is there in router!! and check for ppp is it active or down? Might be authentication credential is not correct that could be the reason?

1. You possibly have lost the IP address from the ISP to your router and you will need to release/ renew the IP or you have a damaged Ethernet cord ( rare) but none the less could be damaged.
2. unplug the Ethernet cord from the connection at the wall for a few seconds and then plug it back in the wall connector.
Then try your connection. Call your ISP ( internet service Provider) and check the line to see if you have proper signal to the router.

Further instructions:
1.Log into router
2. Verify wireless router name( on the computer) >>> ( on/off)
3.Note router name you are connecting to.
4.. Check the laptop do ipconfig /all to see current IP addresses.
5. Set the laptop/desktop up in the router by WEP KEY or MAC address.
6.Note router name you are connecting to.
7. Move the laptop about 20ft away and try to log on to the internet.
This is for all routers to set up wirelessly.

I'm not sure if you can connect an Xbox 360 to the internet with a lap top. What I would do, is get a router (guessing that you already have one). But if you don't, it's basically a splitter for Ethernet cords. You plug the router into the Modem (the box that makes the internet), buy an Ethernet cord, plug it from the router to your Xbox and you should have internet. Or, you can get a wireless router, and get a network adapter for your Xbox to get internet wireless. But I don't think you can just get internet from your laptop.

Try turning off the power to the router for 30 secs and then power it up again.

I have a question...

Does the laptop recieve internet connection?

If so, go to your router and plug in another ethernet cord into the first,second,third slot and then plug the other end into your desktop's ethernet slot.