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I'm not too good with routers, but I'll suggest something.
Go into your Router settings (should be http://192.168.1.1), then go to the security tab and uncheck "Filter Internet NAT Redirection". (If it's checked, maybe uncheck it to see if that works?)
This is what my problem was once, maybe and hopefully it will solve yours.
Other than that maybe you could try to reset it through the button on the back. I imagine you've tried that though. :(
Have you tried inputing your information (IP, Subnet, Gateway, & DNS) manually or if already done manually, then set to automatic on your Xbox 360? How about moving the cable to a different port on your router? I, myself, have always had problems with Linksys routers for some reason. They would work fine for a week or so and then I would lose connection to the internet and the only way I could fix it was to reset the router to factory defaults and re-setup everything. So, you may wish to try that as a last resort.
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