To the previous posters... I have two near-new routers, and i have read reviews that they both run flawlessly for xbox live (i've tried both, neither work)
to starbound: how do I check the WPA stuff? I thought I knew a fair bit about tech but that just went over my head..haha
mitch_watt
Your routers should have some way to change their configuration (usually via a browser web page like interface) to your likings. Usually all you have to do is type in http://192.168.0.1/ (The "gateway" IP for your LAN) into your browser, and a router admin page will come up. From here depending on your router you can check your wireless settings. Encryption (Such as WPA2) is the way wireless networks secure themselves, based on the method. Most routers nowadays support WEP (An older standard, less secure.) and the WPA (Wi-fi Protected Access) system.
If you didn't know about the different types of wireless encryption, then it may be very likely you are running a wireless network with no encryption at all (Which isn't safe, someone could park a car outside your house with a laptop and leech off your bandwidth if your antenna strength is strong enough for that.)
If you have a newer router, use the above mentioned method for checking it, however also check to see that it is not broadcasting an 802.11n draft signal. 802.11n is a newer wireless standard that is still under a draft - meaning it's not fully ratified yet. Some devices will support the draft, others will not. The wireless adapter for the 360 is not certified for the N draft signal, but I have heard people argue that it will work fine under an N signal network because of backwards compatability with the current 802.11g and b networks out there.
If you need more help with routers or wireless networks, I would recommend going on over to the PC Hardware Discussion forums here and ask any questions you might have there. If you're having trouble figuring out how to configure the router (if the web interface doesn't work for you.) check the website of the manufacturer of your router - they may have a how-to on configuration. Also don't forget any documentation that came with your routers.
On a final note, something interesting when I was trying to connect my 360 the same way: The damned thing wouldn't connect to the wireless network at all, even though the router was on, but... If I turned on the PC where it was connected, it wouldn't have a problem connecting. Something to try if all else fails.
Hope this helps you. Good luck!
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