Do i have to use the one that microsoft made and overcharged or does any wireless adapter work?
Wireless Adapter for 360
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While a wireless adapter, it will turn any ethernet device wireless. So you setup the wireless adapter through a computer internet browser. Once setup it connects to your wireless network. At that point, the ethernet ports on it are active. So you plug in the 360 to it with an ethernet cable and for all the 360 knows, it's on a wired connection, no setup on the 360.
These devices usually cost $60-$100, and only have one ethernet port. I hear you can get a 4-port switch to connect more devices to them ($20 or more), so you don't have to buy several $50 adapters with antennas for each device. But who knows the compatiblity issues, and one more plug for an outlet.
Though, here's the one I bought, good reviews too. It was on sale for $55 a few weeks ago, now it's $65. What is nice is that it has a 4-port switch built in already:
http://www.circuitcity.com/ssm/Buffalo-Technology-Wireless-G-MIMO-Performance-Ethernet-Converter-WLITX4G54HP/sem/rpsm/oid/162407/catOid/-12980/rpem/ccd/productDetail.do
Check out the 133 user opinions at newegg for it, event the first one mentions he got it for the 360:
http://www.newegg.com/Product/Product.aspx?Item=N82E16833162168
It's not cheaper at Newegg once you count shipping and how difficult a return would be..
It should work with most wireless routers, no special feature needed on the router side. I got it to connect to a cheap $40 D-Link I just bought on sale. Only setup issue I had was this Wireless Adapter only let me type in text characters for my wireless network key, so it failed being that my router was setup with digits. So on my D-Link router, instead of using Hex WEP protection with 10 digits, I changed it to ASCII WEP for with 5 text characters. I know, I really should have done the more advance protections available, but it finally worked
Anyway. I got my PS3 20gig, Tivo, and 360 connected to that one device all at once. A test download on the 360 clocked in at 607k a second, the fastest my 6mbs DSL goes.
You can see it behind my TV:
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