I use Xbox LAN cable, connect to my netbook (Win 7), share internet connection via wireless -> LAN.

On my router, I configured my netbook mac address to get static IP and I just use DHCP on Windows, it auto use the static IP from router.

That's all, so far no issue during the very old time when I played Resident Evil 5, no lagging at all, that time I was using 1 mbps Streamyx, now upgraded to 4 mbps but long time never play on Live though...