Tutorial is in the bottom half of the post, if you want to skip my story 
This post is an update on my last Xbox 360 post, where I talked about using a Bridged connection to get connected to Xbox Live.. Well me being me I had to keep trying to used what I was told I could, that being ICS (Internet Connection Sharing) because before this wouldn’t work for me.
While I was using the bridged connection I kept loosing Internet over and over again and the only thing I was able to pin this down to was the bridged connection.. as this was the only change I had made to my Internet in the time frame.. anyway that’s a long story and it turns out that NTL aka Virgin Media where the cause of my issue with intermittent Internet.
Once all this was sorted and my Internet was fine and I found out what my problem was.. and you are going to laugh your arse off, nether the less I’m going to let you in on my what was causing my stress… wait for it… I feel so embarrassed about it!
I have a Mac address on the Xbox a manual one! That I put in for (cough) some reason… and because of this I was unable to use ICS so the first, very first thing! you should do if you are having issues setting up ICS with your Xbox I would insist that you check that all your Xbox network settings are set to Automatic or default meaning you don’t change a thing from the basic settings and then try setting up your ICS and everything should be ok like it is for me now.
Lets get you connected then using ICS rather then Bridged.
First Navigate to:
Start > Network > Network and Sharing Center > Manage Network Connections.
Now that you are in network connections make sure that there are only two icons in here that being 1. Wireless 2. Local Area Connection, these are the only two connections that should be there
Now go into the properties of the wireless connection and make sure you have unchecked “allow other network users to connect thought this computers Internet connection” Uncheck the box and click OK
Now reboot the computer
when you are up and running again go back to:
Start > Network > Network and Sharing Center > Manage Network Connections.
Enable Local area connection if its not all ready, go to the properties and double click “Internet Protocol Version 4 (TCP/IPv4)” with will open the properties, ensure that “Obtain an IP address automatically” and “Obtain DNS server address automatically” are both checked! then click OK.
Now go to the properties of the wireless connection, on the sharing tab check both boxes and click OK.
go to the properties of the local area connection once again and open up 4 (TCP/IPv4) again and you should now see that’s its changed to
ip 192.168.0.1
subnet 255.255.255.0
default gateway -empty-
and that use the following DNS server addresses is now checked.
This should now allow you to connect to xbox live with via the Ethernet cable from your laptop to your xbox.
If anything above is not what I’ve said then recheck/redo until you get the same results because they are what will get you connected.
Important: You do not need a Crossover cable, a normal run of the mill ethernet cable will work fine. I only say this because I’ve come over alot of people saying you need a crossover cable when you don’t, I’m not sure if this was the case with older Xbox’s but I can asure you its not the case with a new Xbox 360.
How to Fix “An error occurred while Internet Connection Sharing was being enabled”
If you do encounter any issues while trying to set up either an ICS or Bridged connection let me know and I’ll be happy to help you if I can (Time permitting).
Adam Nugent
