Connect your console to Xbox LIVE using a Windows computer in place of a router.

You can use Windows Internet Connection Sharing to share your Internet connection between your computer and your Xbox 360 console. If you do this, both the console and your computer can access the Internet at the same time.

To use Internet Connection Sharing, you must have the following:

• A computer that has two network adapters

Note Most laptop computers have two network adapters, one for a wired connection and one for a wireless connection.

• A USB modem that has at least one Ethernet connection
• Windows XP, Windows Vista, Windows 7, and Windows 8 (The Windows 7 Starter edition does not support this feature.)
• High-speed Internet access
• A standard Ethernet cable

Set up Windows Internet Connection Sharing

The following steps show Windows 7 and Windows 8 screen images. However, the steps are the same for earlier versions of Windows, unless otherwise indicated.

1. Click the Start button.
2. In the Search programs and files box, type ncpa.cpl, and then press ENTER.
   For Windows XP: Click the Start button, click Run, type ncpa.cpl in the Open box, and then click OK.

1. Right-click the network connection that you want to share, and then click Properties. The appropriate network connection to share is the one between your computer and your modem, not the one between your computer and your Xbox 360 console.

1. Click the Sharing tab. If you are using Windows XP, select the Advanced tab.

1. Select Allow other network users to connect through this computer's Internet Connection, and then click OK.

1. Wait for the network connection status to change to Shared.

1. Start your web browser, and try to connect to the Internet. If you cannot connect to the Internet, make sure that you are sharing the primary Internet connection in step 3.
2. Plug one end of the Ethernet cable into the network port on your computer. Plug the other end of the network cable into the back of your Xbox 360 console.
3. On your Xbox 360 console, make sure that all network settings are set to Automatic.
   Here's how:
   Note If you are connecting to a wireless network, or if you have PPPoE settings entered, note the settings because you might have to enter them later.
   
   
   1. Press the Guide button on your controller, go to Settings, and then select System Settings.
   2. Select Network Settings.
   3. Select Wired Network if you are prompted to do so.
   4. Select the Additional Settings tab.
   5. Select Restore to Factory defaults.
4. Test your Xbox LIVE connection. To do this, follow these steps:
   
   1. Press the Guide button on your controller, go to Settings, and then select System Settings.
   2. Select Network Settings.
   3. Select Wired Network if you are prompted to do so.
   4. Select Test Xbox LIVE Connection.

   Troubleshooting Internet Connection Sharing issues

   Solution 1: Make Sure Windows Internet Connection Sharing is set up correctly

   If the Sharing tab is not displayed or, in Windows XP, you do not see the option Allow other network users to connect through this computer's Internet connection, one of the following might be true:

   • Your computer does not have two network adapters. To resolve this problem, install a second network adapter in your computer or check to see if your existing network adapters are functioning correctly.
   • You might be trying to share the wrong network connection. To resolve this problem, repeat step 3 above, and select a different network connection.

   Solution 2: Set your console's IP settings manually

   If you receive either of the following error messages, try the steps below:

   Can't obtain an IP address from your router or modem

   Your DNS server can't resolve Xbox LIVE server names

   1. Press the Guide button on your controller, go to Settings, and then select System Settings.
   2. Select Network Settings.
   3. Select Wired Network if you are prompted to do so.
   4. Select Configure Network.
   5. On the Basic Settings tab, select IP Settings.
   6. Select Manual, and then select IP Address.
   7. Enter 192.168.0.2, and then select Done.
   8. Select Subnet Mask, enter 255.255.255.0, and then select Done.
   9. Select Gateway, enter 192.168.0.1, and then select Done.
   10. On the Basic Settings tab, select DNS Settings.
   11. Select Manual.
   12. Select Primary DNS Server.
   13. Enter 192.168.0.1, and then select Done.
   14. Select Done again.
   15. Press B on your controller, and then select Test Xbox LIVE Connection.

If you have a laptop computer with both wired and wireless network adapters, you can use your laptop to connect your Xbox 360 console to Xbox LIVE. This type of connection is called a network bridge connection. This connection is quick and easy, but you cannot access the Internet on the laptop when the laptop is connected to your Xbox 360 console.

To use a network bridge connection, you must have the following:

• A computer with two network adapters
• Windows XP, Windows Vista, Windows 7, or Windows 8
  Note The Windows 7 Starter edition does not support this feature.
• High-speed Internet access
• A standard Ethernet cable

Set up a network bridge connection

Note The following steps show Windows 7 and Windows 8 images. However, the steps are the same for earlier versions of Microsoft Windows, unless otherwise indicated.

1. Click the Start button.
2. In the Search programs and files box, type ncpa.cpl, and then press ENTER.
   Windows XP: Click the Start button, click Run, type ncpa.cpl in the Open box, and then click OK.

1. Select the two network connections that you want to bridge. To do this, click the first network connection, press and hold CTRL, and then click the second network connection.

1. Right-click either of the selected network connections, and then click Bridge Connections.

1. Wait for the new connection icon to be displayed.
   Note The new icon will be labeled Network Bridge. When the icon appears, the new connection is ready to use.

1. Plug one end of the Ethernet cable into the network port on your portable computer. Plug the other end of the network cable into the back of your Xbox 360 console.

1. On your Xbox 360 console, make sure that all network settings are set to Automatic.
   Here’s how:

If you are connecting to a wireless network, or if you have PPPoE settings entered, note the settings because you might have to enter them later.

1. Press the Guide button on your controller, go to Settings, and then select System Settings.
2. Select Network Settings.
3. Select Wired Network if you are prompted to do so.
4. Select the Additional Settings tab.
5. Select Restore to Factory defaults.

This resets the network settings to their default setting. This does not affect any other console settings.

1. Test your Xbox LIVE connection. Here's how:

1. Press the Guide button on your controller, go to Settings, and then select System Settings.
2. Select Network Settings.
3. Select Wired Network if you are prompted to do so.
4. Select Test Xbox LIVE Connection.

( This Post was not made by me it is just off here ) i just put it here for people to find it easier i take no Credit for this thank you