Trouble with the 360 Network Adapter

Okay guys and gals, I'm really in need of some help on this one... I just picked up the 360 Wireless Network Adapter, hoping I could get my Live connection back..but I'm instantly having trouble with it.

So check this, with my 360 off I hook up the adaptor like the instructions say to do... I turn on my box and go to Network Settings and select test connection. Now, the first test the 360 runs is to make sure that you're physically connected. I fail it?! Upon looking at the suggested troubleshooting for this problem, this is what I'm told to do:
1. Verify that your wireless adapter is connected directly to the rear panel USB port. Do not connect your wireless adapter to a USB hub.
2. Make sure that there is adequate ventilation around the adapter.
3. Disconnect then reconnect your wireless adapter, then turn your console off and back on.

Typical Microsoft troubleshooting right..? But I give it a shot. #1: Check (the steady red light is on, telling me the adapter is ready to be connected to a wireless network.) #2: Check (my 350 is standing up on my desk with plenty of room around it.) And finally #3: Tried this step about 5 different times and still.....no cigar.
So appearantly, my 360 isn't recognnizing that the wireless adapter is connected to it..or at least that's the conclusion I've come to....

Like I said, I really need some help on this one.

you do have the wireless modem do you?

if your connecting the 360 directly to the modem and you do have wap, you need the code from your modem, then imput that code manually to your 360

if your connecting trough pc wifi , you have to set it to share this connection so any wireless device can detect it

also firewall could be affecting the signal

My modem is hooked into a wireless router which is in a different room. But that shouldn't be a problem because I still get a wireless internet connection in my room, which by the way is where my 360 is.

I'm no expert on this, but I dont think that's the problem..at least not yet. Like I said before, it seems that my 360 doesnt know that it has a wireless adapter plugged into it...Where as the adapter recognizes that its connected.

Heck for 100 bucks MS should come out to your house and install and make sure it works properly themselves. I just run my live connection through my laptop.Cwagmire21

Agreed. But to update, I just connected my 360 back to my router with a standard ethernet cable and everything works fine... So again Im at a loss. I think I'll just try exchanging it in about 30minutes when GameStop opens.

Just wondering if the new wireless adapter fixed your problem cause i'm having similar problems with mine

When i hook mine up the xbox can see it but cant connect to my home network. i set up an ad hoc connection between it and my pc and it could see that but then failed at the ip address stage, however it could only connect to the ad hoc network with my laptop when i left it unprotected so even that is not a long term viable solution.

Through Trial and error i think i have located the source of the problem, but not a solution. My network uses 64bit WEP encription which the 360 says it supports, however the encription is shared and not open and i think this is what is causing the problem as when i try using the windows connect now settings from my laptop via usb, when i put the usbback in my laptop it changes the laptops setting to open encription which then takes the laptop off the network. Any ideas how to change the encription type on the 360 without having to change all the computers on my network?samuristeal