It's probably a port thing. What type of router are you using? Try connecting both xboxes directly to the modems. If it works, it's the ports. Here's a step by step guide for linksys. http://portforward.com/english/routers/port_forwarding/Linksys/WRT610N/XBox_360_Media_Center.htm
Installing to the hard drive is great. It's really quiet and the load times on games like fallout 3 are much quicker. Halo 3 has some sort of bug that you shouldn't install it. I install everything I play.
I was down about 80,000 and thought I would try the glitch, but i couldn't make it work. I was able to dig myself back out of the hole over time, but did it get patched?
Make your 360 a dmz. You can open ports, but its a pain in the butt and not all games use the same ports. The 360 can't get viruses, so it's easier to make it a dmz.
I returnerd mine with the Best Buy warranty and they exchanged it for me on the spot. I was even able to pay the difference and upgrade to an Elite with the warranty.
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