Well I had DNS trouble with PS2 online, I don't even own an Xbox :P
Anyways, follow these simple instructions.
Start>Run>type in 'command'>type in ipconfig /all
It should come up with all these IP addresses and stuff like that. Go to were it says DNS servers, there will be two sets of numbers there. When setting up XBOX live put the numbers in the DNS bit, if it still doesnt work switch the two around (primary and secondary) if that doesnt work...well...i just don't know.
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