There’s a couple ways you can bridge or share network connections in Windows 7. This is the way that worked for me:
1. Connect your computer or laptop to the device (Xbox) with an ethernet cable.
2. Turn on Sharing on your wireless (Open Network Connections, rt-click the wireless connection and goto Properties–>Sharing tab. Check the box “Allow other Network Users to connect through this computer’s internet connection”) Click OK.
3. Goto Start menu and in the search box type “CMD” and hit enter. This brings up the Command Prompt. Type “IPCONFIG/all” and hit enter. This brings up alot of configuration details depending on the connections your computer has, but the only one we’re concerned about is the wireless connection you are using. In my case, it was an external USB Wireless-N adapter.
4. Either write down or take note of the following because we’re going to use this info to configure the Local Network connection:
a) IP Address
b) Default Gateway
c) Subnet Mask
d) DNS Servers (first address)
e) DNS Servers (second address below first)
5. Switch back to the Network Connections and Rt-click on the Local Network connection and goto Properties–>Internet Protocol Version 4 (Not Ver 6, leave that one alone)
6. Where it says “IP Address, enter the info from b)
7. Where it says Subnet Mask, use the info from c)
8. Where it says Default Gateway, choose an IP address that’s different from a), for instance, if your wireless IP is 192.168.1.103, then choose 192.168.1.150, just make sure the one you choose isn’t an IP that’s in use by your network already.
9. Where it says Preferred DNS Server, enter the info from d)
10. Where it says Alternate DNS Server, enter the info from e)
11. Open up the Xbox’s Network Settings page and using Static address settings, enter in the same info that you did for Steps 6-10 (You may have to restart the device afterwards so that it detects the new configuration).
Note: Windows should prompt you to select the privacy of the Network connection you setup, usually either Public or Private, and if it does, then select Private(Home) or else you may have trouble getting it to work. If you can’t remember if it prompted you, then open the Network and Sharing Center again and look at the local network name. In parenthases, you will see the privacy setting..usually this is either Public or Private. If it says Public then click on Customize link to the right of the connection and then select Private.