Everyone owning an Xbox 360 knows that they can connect to the Internet. Well, almost everyone. Sure enough, anyone looking to do so should know what this involves and which are the most appropriate steps to take in connecting to Xbox LIVE. Today, we're going to present you with a comprehensive guide that helps you connect to Xbox LIVE wirelessly.

DEF - Wireless Connection: While the term wireless network may technically be used to refer to any type of network that is wireless, the term is most commonly used to refer to a telecommunications network whose interconnections between nodes is implemented without the use of wires, such as a computer network (which is a type of communications network). Wireless telecommunications networks are generally implemented with some type of remote information transmission system that uses electromagnetic waves, such as radio waves, for the carrier and this implementation usually takes place at the physical level or "layer" of the network.
(Wikipedia)

Connecting to Xbox Live Wirelessly:

Requirements: Wireless ADSL router, XBox 360 wireless adaptor, broadband enabled phone line, PC

Note - The wireless adaptor for the XBox 360 connects via USB, not ethernet as illustrated in the above picture. Also note this guide is for the normal XBox, not the XBox 360. However, the steps should be very similar.

1. Setup your wireless ADSL router to connect to the internet if it is not already to do so.

2. Note down the SSID of the wireless ADSL router. This can be found under the Properties page of the wireless router. Also note down the form of security used by the router: either 64-bit WEP, 128-bit WEP or none.

3. Connect the XBox 360 wireless adaptor by plugging it into one of the available USB ports on the XBox 360.

4. Go to the XBox dashboard. Go to the System blade and select Network Settings.

5. Select Edit Settings, highlight the Wireless Mode field at the bottom of the screen and press the A button.

6. Now enter the SSID of the wireless router as noted down in step 2 and the encryption type used as noted down in step 2.

7. Now test the XBox Live connection by returning to the Network Settings screen and selecting Test XBox Live Connection.

The XBox 360 will now test your network settings. The Wireless Network field should be confirmed and stated as being "Wired". Your IP Address, DNS, MTU, ICMP and XBox Live settings should state "Confirmed". The NAT field should also say "Open".

If the NAT field states "Strict", please go to the NAT/DMZ section. If there are other problems, please go to the Port Forwarding section.

The information above was available courtesy of "iamlucky18" up on xbox360forum.com.