I just got the game today and it's my first time playing RE4. I too thought the control stick was overly sensitive when aiming but I got used to it after playing for about an hour. Now it feels fine, and I'm loving the game.
I believe it means your router or modem will not allow you to send the amount of information that is required by Xbox Live. I believe MTU stands for Maximum Transmission Unit. I failed that test when I was at a hotel trying to get on Live; you have to change your router settings to fix it I believe.
I don't think a USB adaptor will work with the 360 (besides the official one ofcourse) but I use a Linksys WET54G and it works for me. You can probably find it in your price range if you search around. You might also consider a Linksys WGA11B.
You make the base image in Photoshop and then add the attributes like gamertag, gamerpic, gametiles, and gamerscore with the editor on the site. The site updates the attributes for you. Hope that makes sense.
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