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ALSO which is what I'm doing now, I'm using the ICS just for the 2 months free trial, there's no point buying an expensive router just to find that you don't like Live (if thats the case).
so to be hones, I would suggest going he ICS way.
Mav was right when he said that you could use the phone at the same time as Live, but that is because you can use the phone at the same time as any broadband. What you would not be able to do is surf the net and use Live at the same time without a router. So you are going to need one...
Step 1: Find out what your modem is like. Is the broadband modem inside the computer itself, or is it an external one that connects to the back of the computer?
Step 2: If the modem is an external modem find out how it connects to the PC. If it has only a USB port (like lots of printers and scanners and other things) then you will need a router with a built in modem. This is because you cannot connect a USB broadband modem into a router.
Here is a good cheap one:
http://www.ebuyer.com/customer/ products/index.html?action=c2hvd19 wcm9kdWN0X292ZXJ2aWV3&product_uid=48449
However, if you do need a router with built in modem then you will also need to find out if your PC has a network card. If you are unsure whether it does or not then:
Right Click my computer and select properties > on the box that pops up click the device manager tab > look on the list for network adaptors and click the plus sign next to it. If you PCI ethernet, network card, NIC or words like that then you already have a network card. If you don't then you will need one.
Here is a cheap network card:
http://www.ebuyer.com/customer/products/ index.html?action=c2hvd19wcm9 kdWN0X292ZXJ2aWV3&product_uid=37966
Let me recap: if you have a USB modem and you don't have a network card which is probably true if you use ADSL then you will need a router with built in modem and a netword card so that the PC can be connected to the router.
Now if you found at the beginning of step 2 that you had an external broadband modem that connected to the PC by a network card, (normally the case if you have cable broadband) then you already have a network card. So you won't need one of them. Also, it means you can get a router without a built in modem because you can plug your modem into the router.
In that case all you need is a 4 port router. Here is a nice cheap one:
http://www.ebuyer.com/customer/products/ index.html?action=c2hvd19wcm9k dWN0X292ZXJ2aWV3&product_uid=52897
Choice number 3 is a bit more difficult to get working. It is called Internet Connection Sharing (ICS). It was only available in Windows ME upwards, so if you have Windows 98 forget it.
What happens in ICS is that you must have a network card in your computer, to which you take a crossover cable and connect the Xbox directly to the PC. Having done this you then connect to the internet with the PC and let the Xbox use the PC's connection. This also allows you to use the internet at the same time as Live. However, the PC must be on all the time that you use Live. Secondly getting ICS to work on Windows ME is virtually impossible. I tried for about 2 weeks. And I know what I'm doing. With Windows XP however, ICS seems to work fine.
Only thing to note with ICS is that if you do decide to use it, if you already connect to the internet, through an external modem which connects to the PC through a network card, that you will need a second network card as you would need one for the Xbox and one for the modem.
Step 3: The hardware you need.
For a PC with a USB modem or an internal modem:
A 4 port router with built in modem
Network card
2 straight through network cables (also known as cat5e cables or ethernet cables)
For a PC with an external modem that connects through a network card:
A 4 port router
2 straight through cables
Using ICS:
A network card for connecting the Xbox to PC
A CROSSOVER cable
Using ICS is the cheapest method of getting on Live and being able to use the internet at the same time. However with Windows ME it is very difficult to set up. XP is fine however.
Using a router is a far more reliable method that allows you to connect as many computers as you want basically to the one internet connection.
If you have ADSL then you probably have a USB modem. These are only of any use if you use ICS. Otherwise you need a modem that can connect to an ethernet port. But be careful, some modems have ports for both.
If you have cable, then as far as I know you already connect the PC to modem via a network card and ethernet, which means you only need a router.
Lastly, the cables are important. If you connect anything to a router make sure you use a straight through or normal ethernet cable. If you connect an Xbox to PC then you need a crossover cable. Both cost a quid or two for a metre or so. It is actually possible to get cables of over 100 feet easily should you need them though.
Anymore questions then just ask.
A USB modem linked to your Xbox and a microfilter for each telephone socket in your house will let you play and use the phone at the same time.
Just get your Dad to contact your broadband ISP if he wants proof.