Airport Extreme Base Station and xBox wireless

We have 2 macs with Airport Extreme Base Station connecting to Cable modem for internet connection.
Recently bought an xBox with a USB wireless adaptor. When xBox is connected to the wireless network, internet connection of other computers dropped out and no longer can use internet until xBox is disconnected from the wireless network. It is the same problem even other computers are connected to Base Station with Ethernet cable.
Any settings in Airport Utility might fix this problem ?

We didn't have any problem before using the xBox wireless.
There are 2 Macs (iMac 20" & Macbook Pro 15") and they're connected to the Base Station via wireless.
The cable modem is Motorola Surfboard SB5100i and there is no login required from ISP for internet connection. Yes, the modem is connected to the WAN port of the Base Station.
With the Clients computer network settings, we are using DHCP. We have also tried with static IP and didn't make any differences.
I thought it could be the compatibility issue between the xBox wireless adaptor and the Base Station and on the other hand, the wireless protocols (802.11N/g/b) are industry standard and it doesn't matter who made them, they should work together.
The only idea that I have now is to try with other brand of wireless router and it might be a quick solution for this problem.
thanks,
David

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    Thanks in advance for any help you folks can offer. I'm a newb here and will try to offer as much detail as I can about the dilemma at hand.
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    Sometimes, I just shut the airport off on whatever computer is having this problem, and the problem goes away. Sometimes, the problem is present across all computers in the house, sometimes only a few are affected. I can ALWAYS see the AEBS in the Airport Utility if the AEBS is connected to the particular computer via ETHERNET CABLE.
    My theories:
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    - The usb workaround is only intermittently viable because of some flaw in the Airport or Airport Utility that causes dropouts to happen when a Macbook Pro or Air's lid gets closed or one gets opened after having been at a different network (e.g., at my office).
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    - I wouldn't mind just relying on the usb hub method if I could just insure more consistency (i.e., no random dropouts of peripherals). How could I do this?
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    Thanks in advance!

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    Brilliant idea about trying the system with No encryption on... that DID solve the problem... almost.. once I turned off the encryption option, and restarted the Airport, I got a dialog box showing that the "Base station needs attention" but it didn't indicate WHAT kind of "assistance" it needed. Nonetheless, I closed out of the Airport program only to find that the indicator light, which had been Green, was now, flashing Yellow and I could not connect anything, including my computer. I opened the Airport program again and found the ONLY way I could get the Green light on was to select some sort of encryption option... then the light would go Green again but my cameras would not hook up again, and when I went back in and ONLY changed the option to NO encryption, I got the yellow flashing light and the "this base unit needs attention" warning...
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    Message was edited by: ShaolinMaster
    Message was edited by: ShaolinMaster

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    Ernest Lohrer wrote:
    Hi,
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