Hardware Instructions:
1. If you don't already have an Internet connection, set one up using the instructions provided by your Internet Service Provider (ISP). Verify that your computer can access the Internet.
2. Configure Internet Connection Sharing (ICS) to share your Internet connection. For more information about ICS, on the taskbar, click Start, and then click Help and Support.
3. Once ICS is configured, verify again that your computer can access the Internet.
4. Before you connect any cables, make sure there is no disc in the disc tray of your console.
5. Turn off your console and your computer.
6. If you have an external modem, turn it off and disconnect it from its power source.
7. Connect one end of the Ethernet cable to the Ethernet port on your computer, and the other to the Ethernet port on the back of your console.
8. Turn on your modem, computer, and console.
Xbox 360 Software Instructions:
9. Turn on your Xbox 360 console.
* If this is the first time you are turning on your console, you will need to complete the initial setup and create a profile before continuing.
10. In the System Area, select Network Settings.
11. Select Test Xbox Live Connection. If you are prompted to sign out, select Yes.
* If you have not set your locale on the console, you will be asked to set it. Your locale is the country or region you are connecting to Xbox Live from.
12. If the Xbox Live test reports Connected, congratulations! You have successfully connected your Xbox 360 console to Xbox Live. If you would like to review your settings, select Edit Settings. If you would like to begin gaming, select Xbox dashboard (Y button).