My friend suffered like these doubts....... he cleared his problem with the help of xbox 360 repair guide...... click here for your reference
Hi there
Turn
off the Xbox 360 by pressing the power button on the front of the
console. Afterward, shut off your modem by unplugging its power cord.
Read more: How to Set Up Xbox LIVE with an Ethernet Cable | eHow.com http://www.ehow.com/how_6714462_set-xbox-live-ethernet-cable.html#ixzz0xBK8Zctz
Insert one end of the Ethernet cable into the Ethernet port located at the back of your Xbox 360 console. After that, insert the other end of the cable into your modem.
Replug the power cord into your modem to turn it back on. Once it is active, press the power button on your Xbox 360 to turn it on.
Navigate to "My Xbox" then "System Settings." Afterwards, select "Network Settings" then "Test Xbox LIVE Connection." You will be notified on-screen if the connection is successful.
GOODLUCK!!
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