Hello

This will hopefully help those of you who cannot/don't want to but the official xbox 360 wireless adaptor.
There are several different methods of connecting your 360 to xbox live wirelessly:
1) Official xbox wireless adapter
2) ICS/Network bridge connection with a wireless laptop/pc
3) Modified router
4) Gaming router
ICS did not work for me, and many people have reported the same particularly in vista. Network bridge connection seems to function for most people. It involves bridging your pc/laptop's wireless connection with its LAN connection. You then connect an ethernet cable from your laptop/pc's LAN port to your xbox 360's LAN port.
Modified router as an option is technically more difficult to achieve. This involves turning a router into a wireless receiver so it communicate with your router that is connected to the internet. This is possible by using 3rd party software to flash the existing router firmware : DD-WRT. Not all routers are compatible.
Gaming routers are almost as expensive as the official adapter and can be hard to setup. There are wireless N gaming routers that offer much better performance than the original adapter.
When using wireless option to connect to live you may notice your NAT is moderate (or worse!

) This can be remedied by either turning on UPnP on your router, DMZ or portforwarding.
This site has some pretty solid information on the topic as well as step by step guides:
How to connect wirelessly to xbox live