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There are two different tiers of Xbox Live. There's the free Silver subscription and the $50 per year Gold subscription.
 The Silver subscription gives you access to the Marketplace where you can download trailers for games and movies, free and premium content for games, free and premium gamer pictures and themes and many other items. It also gives you access to game updates as they are made available, and the ability to have a friends list - a list of 100 people that you can text, voice and/or picture message (with the Vision Cam).
 The Gold subscription is what allows you to play online multiplayer with other people over Xbox Live.  If this is what you are wanting with Xbox Live then you are going to need an Xbox Live Gold subscription, which can be bought in-store, or from the console itself (using a major credit card).
Not sure what 10p a minute means....must have been in one of those snazzy books you read, but aside from the initial cost of Xbox Live which you already mentioned having there should be no additional cost to you. Unless of course your ISP limits you in some way for bandwidth usage and in that case if they have severely limited you and you are a heavy downloader then there could be an overage charge. But I highly doubt it.Large_Soda
The OP is from the UK and was referring to this when he is talking about "10p a minute."
Internet? You pay once a month for your regular internet. This means you can use as much of the internet as you want and they won't charge you extra. So, your internet bill(comcast, charter, bellsouth, etc.) wont change.
Xbox Live Gold(which is what you want) is a around $5 a month. You can go to a regular game retailer and buy these prepaid cards. They cost like $50. They give you a year's worth of xbox live. Just buy the card and put in the code into your 360 in the Xbox Live Marketplace redeem code option(this is only for if your parents don't trust credit cards). Buying the card is actually cheaper than paying monthly by I think $10(card: $50; a years worth of paying monthly: $60). This is because you're giving Microsoft all their money up front.
You pay whatever the your ISP charges you to have Internet.
 Xbox Live does have any 'tacked on' charges to your internet bill. It doesn't work like long-distance phone calls where it charges you per minute.
 You just pay the $50 annual fee, or $20 3 month fee, and that's it. It doesn't create any additional charge on your internet fees.
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