Post over at @ Programminghelp
Open up your Xbox Live ports!
Most broadband routers use Network Address Translation (NAT). Windows Internet Connection Sharing also uses NAT.
For most networking hardware that uses NAT, forwarding a network port from one network node to another network node (usually known as port forwarding or tunneling) is not required for your Xbox console to connect to Xbox LIVE. This is especially true if you use an Xbox LIVE-certified device. Port forwarding should only be necessary if you use a proxy server or a true firewall device instead of, or in addition to, NAT. Sometimes, you may have to configure port settings on a non-Xbox LIVE-certified router or gateway.
If there is a firewall device between the Xbox console and the networking hardware, you may have to configure the firewall to enable communication on specific network ports. If the NAT status in the Network Status area of the Dashboard is "moderate" or "strict," you may have to configure port settings.
The following ports must be available for Xbox LIVE to operate correctly:
• UDP 88
• UDP 3074
• TCP 3074