I'll tell you how it works. Without a Router you can't have more than one internet connection unless you have two Network Cards installed in your computer. If you do then you'd have to have the computer on. The Modem running into one of the ethernet ports. The other one you run an ethernet cable from your computer to your 360. I doubt you have two Network cards so You'll have to unplug the ethernet cable from the computer and plug it into your xbox when you want to go on live.
Hope this helped.





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