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Originally Posted by preacher
Does anyone have any further ideas?
1) All set to Automatic - 360 Off nd have no current Live Subscription.
2) As standard have USb to PC for CM. have no Xbox package with Ntl.
3) Turn off PC and CM.
4) Remove USb and Conn enet cable that came with 360 between CM and 360.
5) Leave all for 1 minute, start Cm and await Sync & Rdy lights.
6) Start 360.
7) Go to test Xbox live Settings and get OK on network then Failed on IP.
Please help, I wanna shoot people 
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I just ordered this
http://www.pcworld.co.uk/martprd/product/seo/852034 so i don't have to keep unplugging the modem and trailing a cable across my living room each time!
Hope that helps.
[edit]
Also all i did was to unplug the modem from the PC and plug into the xbox 360 and it worked right away. I signed up there and then via xbox live to the free live silver account.I had to reboot the modem to be able to use it with my pc again though.
You really should be using ethernet to connect your cable modem to your PC as USB is considered to be not so good.