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Re: How does this work then?
You'll need an RJ45 crossover cable to connect the Xbox to the modem. The Live memberships are as follows;
Silver - Allows access to marketplace to download demos, extra content, media and arcade games. This membership is the default and is free although you'll need to buy points with a credit card to exchange for most of the content. No online gaming with this option.
Gold - This is the membership you pay for (monthly or you can buy 12 months up front) as an upgrade to the silver and this adds the ability to play multiplayer games online, in addition to the above, so this is what you'd need.
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