If you have it wired don't bother with wireless. Especially if you have your Xbox far away from your router. I have a friend which lags phenomenally with wireless and his router is downstairs. So they are not very good for range.
I use the wireless adapter, router downstairs and 360 in my bedroom. Always a full signal and easy to set up, it connected to a network before i even got to the setup page . It does work with WPA and WEP. The only real downside is if you use media centre to stream videos to the 360 it will stutter quite a lot on high quality video.
I use a NETGEAR Wireless Game Adapter WGE111 for my gaming with no problems it plugs into the rj45 port on the xbox and i got it cheaper than the xbox branded one.
Quoted for truth. I have set up a WRT54G in bridged-wireless mode for use with a 360 and it works great. Why pay £55 for a wireless adaptor that you can only ever use with one device?
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