WRT54GS V7.50 with XBox 360

Sorry guys i know you probably get fed up with all the 360 questions around here, but I have tried searching here and google (Someone will now find an answer to my Q! lol).
Anyway heres how my setup is.
Modem into router
Cable from Router to PC
Laptop connects wireless with built in wireless
Cable from laptop to Xbox 360 and share net connection.
Now, it all connects fine, I signed up to LIVE bla bla.
Did a test everything looked fine, NAT even said OPEN. Mate send me a request to play Halo3 and says I cant connect and mentions NAT. Tried all sorts of different guides. One told me to give the xbox an IP manually, but then it just doesnt connect, do a test and gives an error when it comes to "IP".
Now the IP it gives automatically is 192.168.0.xxx
Yet all my other IPS, and when using port foward etc on my router, i dont have the option to use a IP that end 0.xx there all 1.xx?
 Is this because I'm connecting through the laptop?
http://www.ianarchbold.com/xboxlive/ <---- this is one of the guides I tried to follow
Cheers for any help.

Conenct your xbox directly to the router then it will work fine. The ip 0.xx is because your xbox is connected to the lap top.

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