Your in luck, I have the exact same stuff as you and I had the exact same problem. Ok heres what you gotta do. Turn off the Modem, router, xbox, and game adapter. Then turn on your modem, wait for the DSL light to become solid. Then turn your router on. Make sure the phone wire is in the Modem running to DSL phone number, then have the internet LAN cable running into the Internet Lan cable port on the back of your router. Have a LAN cable running from the 1 Lan port on the back into the back of your computer. Plug the game adapter into the router and the AC Plug into an outlet. Pop in the cd that your adapter came with and run through the set up. At the end it will tell it is done configuring your game adapter. Close out the application, unplug your game adapter from the router and wall. Then bring your game adapter to your xbox, plug the power in first, then the LAN cable into the back of your xbox, wait for the power light to become solid, then turn on your xbox, your ethernet light should turn on. You should then be able to sign on to xbox live, if you cant understand my directions or this doesnt work, let me know and ill give you a call or something and help you set it up.