have you tried it wired?
afaik, if you plug it in, it should “just work”
i have the old shape one so never tried wireless (it also sits next to the router)
i know my router doesn’t play too happily with mine though, its EITHER xbox, or Internet, and there is no “disconnect from xbox live” button in the dashboard, so if jose wants to get online while im playing, i have to play offline games, and physically remove the cable from the box.
good luck.
xbox live is the SHIZZLE to be fair.
makes a pretty antisocial toy a fun social tool i find.
really enjoy teaming up with friends from uni across the UK to shoot at whingey american kids 😉
also, playing against real people improves games hugely over playing against computer opponents