Guide to Home Networking: Introduction
What's a home network?

A home network is a way to connect your Xbox console and all the computers and printers in your house so that you can share files, share the printer, and multiple people can surf the Internet and play on Xbox LIVE at the same time. This eliminates all kinds of inconvenient and annoying situations, such as: having to save your file to a floppy and take it to the computer that's connected to the printer; waiting until someone is done e-mailing Grandma so you can surf the Net; letting your roommate finish researching their thesis on the Net while you wait to jump on Xbox LIVE! A home network saves you all that aggravation.
Note
When multiple devices share an Internet connection, each device gets a little bit less of the connection. Sort of like when you share your ice cream with a buddy. You both get ice cream, but you each get less than if you'd eaten it all yourself.
Setting up a home network doesn't have to be scary. Let us show you the benefits of a home network, and how to create one that best fits your needs.

Home Networking: Step-by-Step

1.) Make a Plan
The first thing you want to do when you create your home networking plan is make some important decisions.
How extensive will my network be?
Are you going to use this network just to share an Internet connection between your PC and your Xbox console, or are you going to link up other PCs or a printer?
Where do the devices that I want to link together live?
If you live in a dorm room, that's pretty simple—all your stuff lives in the same room (plus, you're probably not too picky about exposed cables). If you live in a multi-story house with PCs and other devices in several different rooms, the network will obviously need to cover more area.
How much Ethernet cable do I need?
You'll want to make careful measurements to determine exactly how much cable to buy. Remember, you'll probably want to run cable along the baseboard at the very least, so don't take measurements from PC to Xbox console to router "as the crow flies."
Note
Ethernet cables aren't like speaker cable—you can't just cut them to the length you want. You need to buy the right number of cables in the right lengths.
Cables—do I care enough to hide them?
The truth is you may not care at the moment—you want to get online and start playing. But in a few weeks, you or maybe someone else in your home will get sick of looking at and stepping over cables, and you'll want to make them a little less noticeable. If you have a small network and your PC and your Xbox console just live on opposite ends of the den, then the easiest thing to do is to use U-shaped staples to run your cables along the baseboard. If your networked devices live in a lot of different rooms, you'll want to run your cables through walls and floors.
Where do I put the cable or DSL modem?
You may want to consider placing your modem next to the Xbox instead of the PC (as long as you don't have a USB modem). That way, it's easy to connect your Xbox, and you can always use wireless to connect your PCs. You should contact your high speed Internet service provider if you want to move your cable or DSL modem to a new location in your home. Where do I put the router?Where to put the router is pretty important. Here are some things to consider:
Your router should be near your cable or DSL modem.
Your router needs to be near a power source.
Your router shouldn't live in direct sunlight or too close to a heater.
Your router shouldn't live next to radios or fluorescent lights.
Your router needs air. Like your Xbox console, it will overheat if it's covered up.
2.) Gather the Essentials
Don't you hate it when you're right in the middle of a project and you realize that you don't have enough of something or you forgot something or you bought the wrong something? Everyone hates that. Make sure you've got everything you need before you begin. Make a detailed shopping list. Do some research before you hit the stores. Consult your plan.
Ethernet cable: How many do you need, and how long are they? You took measurements, right?
Router: Buy one that works with Xbox Live. If it has wireless features, make sure it also has

Ethernet ports! NIC: Do you really need one? If so, make sure your computerdoesn't have one already. Some PCs come with them built-in, but you may never have noticed it because you didn't need it!
3.) Put It All Together
Follow the Router Connection instructions if you're setting up your home network with a router.
Follow the Windows ICS Connection instructions if you're setting up your home network through your PC using Windows Internet Connection Sharing.
4.) Power Up and Play!
You've done the dirty work, and now it's time for the sweet reward. You should now have everything you need:
High-speed Internet service
Your network configured to connect to your high-speed Internet service
Your Xbox LIVE Starter Kit
So turn on that Xbox console (if you're using Internet Connection Sharing, turn on your PC as well), load your StarterKit disc, and enter the global gaming arena known as Xbox LIVE!

Do I need to have a home network?
You don't need a home network to play on Xbox LIVE. You can connect your Xbox console right to your cable or DSL modem with an Ethernet cable. That's a direct connection. It's fast and simple to set up. But there are disadvantages to the direct connection:

Your PC cannot access the Internet if your Xbox console is using the connection.
Unplugging the Ethernet cable from your Xbox console and back into the PC every time you need to use your PC gets old real fast.
Unless your TV and Xbox are right next to your PC, you'll have lengths of cables underfoot. The second time you trip over them, you'll want to find another solution.
Note
In most cases, you will need to use a PC to initially configure your high-speed Internet connection before directly connecting your Xbox. Contact your Internet provider for details.