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					Originally Posted by MadGamer  Yep I see the problem, your router is assigning whats called an Automatic Private Address, which is the 169.xxx.xxx.xx, when it should be assigning a 192.xxx.xxx.xx address. | 
	
 
Factually incorrect.  The router has nothing to do with it.  The NIC on the Xbox cannot obtain a DHCP address and after a timeout period it will assign itself the automatic IP address of 169.x.x.x.  The router does not assign it.
Saying that - the OP has a network issue.
Can you plug the xbox direct into the router - bypass anything else and does it then work?