it says that because it acknowledges that its "plugged in" but theres no data been sent between the 2 pices of hardware. it sees that another piece of hardware is connected on the other end of the cable but its thinking "well, ive not been told to send anyhing to that, and its not talking to me, WTF limited Connectivity!!!OMG11!!!" when you click the box on the wireless connection to enable ICS (which you cant find at present) it says "oh right nice one, i have to send and recieve any data to/from the wireless connection, here xbox have some t'internet"