Most broadband routers use Network Address Translation (NAT). Windows Internet Connection Sharing also uses NAT.
For most devices that use NAT, port forwarding is not required to connect to Xbox Live. This is especially true if you use an Xbox Live certified device. Port forwarding should only be needed if you use a proxy server or a true firewall device instead of, or in addition to a NAT. Sometimes, you may have to configure port settings on a non Xbox Live certified router or gateway.
If there is a firewall device between the Xbox console and the network device, you may have to configure the firewall to enable communication on specific network ports. If the NAT status in the Network Status area of the Dashboard is "moderate" or "strict," you may have to configure port settings.
The following ports must be available for Xbox Live to operate correctly:
For information about how to configure port settings on a firewall, router, or gateway, see the documentation that came with the device. If you are using an Xbox Live certified device, and the NAT status in the Network Status area of the Dashboard is "Moderate" or "strict," verify that the device has the correct firmware. For information about Xbox Live certified devices, including the correct firmware version for the device, visit the following Xbox Web site: http://www.xbox.com/en-US/support/connecttolive/
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