I have the same issue, I can watch Xbox Live videos, see who's online and such, but whenever I try to access Netflix, Hulu, last.fm, or even download an update for a game, it says I am not connected. Ran the connection test several times and no issues came up. My Xbox is directly connected to my router via ethernet cable and no settings have changed. All my computers in my home run off the same router and they can connect just fine to the internet. I was even using live earlier today around 7 am central time with no issues.