People don't get it. You don't need that XBOX LIVE kit, all it gives you is head phones...big whoops. Waste of 50$$. You just need the cable and a year subscription is around 70 or 80 bucks....or at least here it is. When you buy the xbox, it's 3 months free though....
Don't even bother buying the subscription. Most games now come with something like 2+ months free. What I did was saved em up before I had live, use the free time they give u, and then use the ones from a game. If I buy another game, I'll get more free months too.
Just get the kit, it's like 70 bucks for headphones, a free game, and a years subscription. Your ethernet cable going to the xbox should just be the same kind going to your computer for your internet. It will have to come from a router of some sort unless you get a wireless one.
Heh, I actually use wireless for my internet. I think I have to get a wireless router for it? Do you have to use a computer to use XBox Live (These are probably the dumbest questions, but whatever)?