You don't have to set anything on xlink to wireless. Why not get a wireless adapter for the xbox (i.e.netgear game adapter) and have both the xbox and laptop running wirelessly? But as mentioned above, make sure your laptop is running the xlink engine, or the process won't work. That is what I am using in my front room and it works great. My other xbox in the back is "wired" because I stream a lot of video (ie movies) thru it, and well, wireless and video streaming can at times SUCK!
hope that helps