Time Capsule and Xbox live

Hello all!
I coming here because I'm having a real problem getting Time Capsule full set up with my network any help would be much appreciated! Here is my problem.
I got a 1T Time Capsule yesterday and got it all set up as the main base station for my network, everything is set up fine in terms of my 2 Mac's being backed up with Time Machine and being able to surf the net wirelessly and I have a base station upstairs just to boost the single to the iMac. The problem I am having is I can't connect to xbox live, when I do the xbox test it keeps giving me the error "can't obtain IP address from router or modem". I have tired a few things already with no luck I went in to the DHCP setting and added my xbox MAC address directly to the Time Capsule. Also going into the NAT settings and checking off "Enable default host at" and then entering 35 at the end to match up with what I put on the other screen. I tried the whole unplug for 10 min and re-power everything nothing worked.
My setup is pretty simple I think, I got the Time Capsule under my TV stand right net to my 360 so I can plug my 360 right into the time capsule. My Time Capsule is about 20-25 feet from my modem and I got my Mac Mini and a iMac hooked up to the network, I also have a Airport express upstairs just to bot the single to the iMac. Both Mac's have up to date snow leopard software 10.6.2 I'm using DSL not cable.
If anyone can give me any help I would really appreciate it!

Howdy,
I can't help on the TC setup, but can only suggest a few things for you to try XBox (360?) to router. You probably have tried these already:
1. Check the ethernet cable and ethernet port on the router works.
2. Instead of using the Automatic option on the XBox to get IP settings, enter in the IP, DNS and gateway settings manually;
3. I have sometimes come across ethernet not switching to the right speed. The Gigabit port on the TC has to auto-sense the 10/100Mb XBox and auto-switch. Can't find anywhere to force the Xbox to connect at 100Mb, rather than auto-detect.
Are there any router logs to tell what's happening?
Another way would be the enable internet sharing on your mac, plug the ethernet cable from the xbox to the mac. I've done this with a pc and it works. However, I haven't tried it with the apple kids.
Obviously one of the draw backs is the the mac has to be up and running. Disable any energy mode on the mac to stop the wlan port from sleeping.
Good Luck.

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