To download new games for your Xbox 360 or play online with others, you need an Xbox LIVE account. Follow the steps in this guide to connect to the Internet through your Xbox and set up your LIVE account.
Steps
Part 1 of 3: Connecting your Xbox 360 to the Internet
Step 1. Determine whether your connection is wireless or via Ethernet
The 360 Slim and new E models have built-in wireless adapters as well as a possible connection via Ethernet. The original 360 model has an Ethernet port, but requires a wireless adapter to connect to a Wi-Fi network.
You may get a better signal with the wireless adapter compared to the built-in wireless connection

Step 2. Connect with an Ethernet cable
If you're using a wired connection to your network, use an Ethernet cable to connect your Xbox 360 to the router. As long as the home network is set up correctly, that's all you need to do.
- Test the connection by turning on the 360. When you get to the Dashboard, press the Guide button (the center Xbox button). Select Settings, then System Settings, then Network Settings. In Wired Network, select Test Xbox LIVE Connection.
Step #3. Connect via Wi-Fi
If you are using a wireless adapter, connect it to the back of the console via USB and raise the antenna(s). You should see a green light when it is functioning. Select Settings from the Dashboard, then System Settings. Select Network settings, after which you can choose the name of your router in Wireless network.
- After selecting your router, you will need to enter the password if your wireless network is encrypted. After entering the password, the 360 will automatically attempt to connect to Xbox LIVE.
Part 2 of 3: Setting up your account
Step 1. The difference between Free and Gold accounts
Free accounts provide the ability to purchase and download games from the Marketplace, as well as keep track of your Gamerscore. If you want to use services like Netflix or if you want to play multiplayer games online, you need a Gold account.

Step 2. Set up your account
Press the Guide button on the controller. Select Join Xbox live. You need a Microsoft ID to sign up for either the Free or Gold accounts. This ID is the same as that of your Hotmail or Messenger accounts, if you use those programs.
To sign up for Gold, you need a valid credit card

Step 3. Choose an account name
When registering your Xbox LIVE account, you must choose a username, or a gamertag. It must be unique and must not contain any offensive material.
Part 3 of 3: Managing your account

Step 1. Renew your Gold account
If you signed up for a Gold account with a credit card, your account will be reset automatically and your credit card will be charged. If you want to use a prepaid code, press the Guide button and select Settings. Select Account and then Account Management. Choose your Gold account and click on "Redeem code". Enter the code of your prepaid card, and the time will be credited to your account.
Step 2. Cancel Xbox LIVE Gold
Go to LIVE Account. You will need to sign in with your Microsoft ID. Select the Xbox LIVE section. Click on the link in the middle of the screen to cancel the automatic payment.