Connecting to XBox 360 issue

Can anyone help me on this? I have the XBox 360 wifi accessory and when I go to set up my network settings, and do the search for connection to XBox Live, it tells me that it isn't connected, but I've set everything up correctly. I've called XBox and they can't help because they are idiot Microsoft people. I spent $100 bucks on this thing, they won't take it back at Gamestop, and XBox is telling me it is because of my TimeCapsule 500GB Wireless N Router that it can't connect. Can anyone help me get this thing working?
Thanks in advance!

Hey Dizzle,
The XBox 360 wireless network device won't work with 'N' mode, you you need to set your Time Capsule to b/g mode so that your Xbox can connect.
Because I prefer to have my network in 'N' mode (it's faster), the way I've done it is to purchase an Airport Express in addition to the Time Capsule.
This is how to set this up: Plug the Airport Express into a power outlet near your Xbox, then run an ethernet cable from the express into the Xbox ethernet port. In Airport Utility, set up the Express to join an existing network (the one that the Time Capsule is on) and set it up to accept ethernet clients.
If you decide to get an Airport Express, you may be able to sell your Xbox wifi unit on ebay or something.
I hope that helps!

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