The $25 Solution
So how can you spend a mere $25 to get internet on your Xbox, including WPA2 support? Well, you have to buy used. You may not like that, but it's easy! What you need to do is buy yourself a used Linksys WRT54G, WRT54GL, or WRT54GS router. They are very common and easy to find used. You could get one on ebay, but that's one of the more expensive sources. Better to get one from Craigslist. If you've never heard of Craigslist, it's a free online want-ad service. Whereas ebay is national, Craigslist is local. The way that Craigslist works is that you find what you want, contact the seller, and then actually drive to their home and pay cash. Just like reading the want-ads in your local newspaper. Craigslist is available here: http://www.craigslist.org. I purchased a WRT54G from a seller that I found on Craigslist. I forget whether I paid $20 or $25. Either way, that's cheap!
SYSTEM REQUIREMENTS
You need a total of 2 wireless routers:
The PRIMARY ROUTER is connected to the internet and supplies the internet connection for your computer(s). Hopefully you already have one. If not, then just buy 2 routers from Craigslist.
The CLIENT ROUTER is connected to your Xbox. This document focuses on the purchase and setup of the client router, so that you have internet access to your Xbox. NOTE: when connecting the client router to a computer (to configure it) or to your Xbox, use one of the 4 LAN ports. Not the WLAN port.
The primary router can be Brand X. It does not have to be the same model as the client router.
For example my primary router is a TP-Link, and my client router is a Linksys WRT54G.
BASIC PROCESS
STEP ONE - log onto Craigslist and find a Linksys WRT54G, WRT54GL, or a WRT54GS wireless router
STEP TWO - before you buy, make sure that the router is compatible with DD-WRT
DD-WRT is free firmware for Linksys routers. After purchasing a compatible router, you will need to flash the firmware with DD-WRT. The DD-WRT firmware offers a Clint Bridge mode that we need.
Please note that if something goes wrong when flashing the firmware, you run the risk of bricking your router! ("Bricking" means that your router is no longer functional and is now about as useful as a brick.) It may be possible to recover a bricked router, but it's not easy. Refer to the guidelines on the DD-WRT website. If you only paid about $25 for the router, then you are not risking much. If you follow the flashing procedure then you should not have any trouble. I flashed two different routers using two slightly different procedures, and both were fine.
General information on DD-WRT is available here: http://www.dd-wrt.com/wiki/index.php/Main_Page
If you find a WRT54GL router on Craigslist, then you can go ahead and buy it. They are all compatible with DD-WRT.
If you find a WRT54G or WRT54GS, then you must check the hardware version. Be sure to avoid the versions that are either not recommended or not compatible with DD-WRT.
To check the hardware version, ask the seller for the first 4 digits of the serial number. Then refer to this list:
CDF0 = WRT54G v1.0
CDF1 = WRT54G v1.0
CDF2 = WRT54G v1.1
CDF3 = WRT54G v1.1
CDF5 = WRT54G v2.0
CDF7 = WRT54G v2.2
CDF8 = WRT54G v3.0
CDF9 = WRT54G v3.1
CDFA = WRT54G v4.0
CDFB = WRT54G v5.0 (not recommended)
CDFC = WRT54G v5.1 (not recommended)
CDFD = WRT54G v6.0 (not recommended)
CDFE = WRT54G v7.0 not compatible with DD-WRT
CDFK = WRT54G v7.2
CDFF = WRT54G v8.0
CDFG = WRT54G v8.0
CDFJ = WRT54G v8.2
CGN0 = WRT54GS v1.0
CGN1 = WRT54GS v1.0
CGN2 = WRT54GS v1.1
CGN3 = WRT54GS v2.0
CGN4 = WRT54GS v2.1
CGN5 = WRT54GS v3.0
CGN6 = WRT54GS v4.0
CGN7 = WRT54GS v5.0 (not recommended)
CGN8 = WRT54GS v5.1 (not recommended)
CGN9 = WRT54GS v6.0 (not recommended)
CGNB = WRT54GS V7.0
CGNC = WRT54GS V7.0
CGNE = WRT54GS V7.2
After you have identified the hardware version of the router, you should check the flashing method and any other relevant details listed here: http://www.dd-wrt.com/wiki/index.php/WRT54G
Just scroll down to the appropriate model and hardware version and read the info. Some hardware versions are easy to flash, some are harder. If you feel comfortable that you can handle it, then go ahead and buy the router.
STEP THREE - flash the firmware
The next step is to flash the firmware. The exact method will vary depending on the hardware version of your router. Refer to the link listed in STEP TWO.
There are several different sizes of DD-WRT, depending on the available memory in your router. Some routers have a lot of memory available and can use the mega version of DD-WRT, while other routers have a smaller amount of memory and must use either the mini or micro version. Be sure you know which one is required for your router.
The DD-WRT firmware is available here: http://www.dd-wrt.com/dd-wrtv3/dd-wrt/downloads.html
Go to the above link and click on the v24-SP1 folder.
Click on the Consumer folder.
Click on the Linksys folder.
Find your model and hardware version and then click on the appropriate folder.
Read any notes that might be listed, and then download all the files that are needed (refer to the flashing method for your router). You will probably see several versions of the DD-WRT firmware. Get the generic version.
You can now flash the firmware. Depending on the model and hardware version of your router, this may involve several steps. You may need to flash with an intermediate firmware, and then flash with the DD-WRT firmware. Just be careful to follow all the steps!
NOTE: when connecting the client router to the computer, use one of the 4 LAN ports. Not the WLAN port.
STEP FOUR - configure the primary router
The primary router does not need any special configuration. Isn't that nice? If you already have a wireless router that you have been using, then you are all set.
STEP FIVE - configure the client router
You should start by resetting the router. Do a 30-30-30 reset as follows:
With the unit powered on, press and hold the reset button on the back of the unit for 30 seconds.
Without releasing the reset button, unplug the unit and hold the button for another 30 seconds.
Plug the unit back in STILL holding the reset button for a final 30 seconds.
The 30-30-30 reset will clear the memory and put all settings to the factory defaults.
You may now connect the client router to the network port on your computer. Use one of the 4 LAN ports on the router, not the WLAN port.
Accessing the router may be a bit tricky for you, because your computer may need to be temporarily configured to a different IP address. The default address of the router is 192.168.1.1. You can try accessing the client router as follows:
Open your internet browser.
On the address bar, type 192.168.1.1 and hit ENTER
If you do net see the DD-WRT screen of the client router, then configure your computer's network port as follows:
Go to Control Panel and then to Network Connections.
Right-click on your network connection and choose Properties.
Highlight TCP/IP and click on Properties.
Click on "Use the following IP address"
For the IP address, enter 192.168.1.100
For the subnet mask enter 255.255.255.0
For the default gateway enter 192.168.1.1
Before you go changing all those settings, take note of the original settings so that you can restore them!
Try again to access the router from your internet browser. You should see the DD-WRT screen of the client router.
CONFIGURATION
The first thing you need to do is enter a login name and password. Be sure to clear each field before you type anything into it.
Now configure the client router as follows:
SETUP main tab
BASIC SETUP sub-tab
WAN Connection Type = Disabled
Local IP Address = 192.168.1.2 (or outside the DHCP range of your primary router)
Subnet Mask = same as primary router
Gateway = IP address of primary router
DHCP Server = Disable
click on SAVE
ADVANCED ROUTING sub-tab
Operating Mode = router
click on SAVE
WIRELESS main tab
BASIC SETTINGS sub-tab
Wireless Mode = client bridge
Wireless Network Mode = same as primary router
SSID Broadcast = Disable
Network Configuration = bridged
click on SAVE
WIRELESS SECURITY sub-tab
Make all settings the same as your primary router
click on SAVE
STATUS main tab
WIRELESS sub-tab
Click on "Site Survey"
Available networks will be listed. Find your primary network and click on "Join".
ADMINISTRATION main tab
Scroll to the bottom
Click on "Apply Settings"
Click on "Reboot Router"
Give the router a minute to reboot. Try accessing the router from your internet browser, but this time enter 192.168.1.2 into the address bar. It should connect. If so, then you are done.
You may now disconnect the router from your computer, and re-connect your internet cable to the computer.
Lastly, if you changed the IP settings in your computer, don't forget to restore the original settings!
STEP SIX - configure your Xbox
Connect the client router to the port on the back of your Xbox. Use one of the 4 LAN ports, not the WLAN port.
Turn on your Xbox. After it starts up, turn on the client router. Give the router a minute to start up.
From the "dashboard" of your Xbox, go to MY XBOX and then to SYSTEM SETTINGS.
Go to NETWORK SETTINGS.
Go to CONFIGURE NETWORK.
Press the A button (on the Xbox controller) and then choose SCAN FOR NETWORKS.
Highlight your home network and press the A button.
Enter the WPA passphrase.
After it connects to your network, highlight the "IP Settings" area and press the A button.
Highlight MANUAL and press the A button.
Enter whatever IP Address you want, starting with "192.168.1". I recommend 192.168.1.200.
For the Subnet Mask, make it the same as your primary router.
For the Gateway, enter the IP address of your primary router.
Scroll down to DONE and press the A button.
Highlight the "DNS Settings" area and press the A button.
Highlight MANUAL and press the A button.
For the primary and secondary DNS servers, enter the same ones that are used in your primary router.
When done, scroll down to DONE and press the A button.
Check all the settings. If they look good, press the B button to back up.
Highlight "Test Xbox Live Connection" and press the A button.
The Xbox should connect to your wireless network. It should then connect to the internet. If yours is like mine, it will fail when connecting to Xbox Live. Not to worry! Just try playing on Xbox Live. It should work.
Congratulations, you are done!