Is it possible to connect your Xbox to your PC (yes, I know this part is) and then use your PC's connection to get online? I went to the Xbox site but they what they were talking about was an Xbox to PC to Router to Modem style set up; what I'd like to know is if it's possible to rig something like this up using just a router and a PC (I want to use the laptop as a modem as it picks up local wireless signals). Is it possible or am I chasing nothing?
 
I was trying something similar w/ my tower and my laptop (tower has no wireless) and managed to get them networked but couldn't get the tower to access the wireless connection from the Laptop.

I once tried to connect my Xbox to my laptop to access Xbox live and it never worked.  The only way I could ever hook up to Xbox live was directly from the router itself.   
 
So in short you probably chasing nothing, because I don't think its feasible.  

You have to setup your laptop to allow internet sharing and it should push through any connection you can get to the devices you have connected to the laptop. Your nomenclature is off but your idea is right, your laptop will still not be your modem it will just be a gateway to someone else's router and modem. 
 
EDIT: This is a site I found for using Vista, googling " connect xbox 360 through laptop" came up with multiple results and video
 http://www.articlesbase.com/networks-articles/how-to-connect-to-xbox-live-through-vista-laptop-1135088.html

Yes, I've done it. It's a very ugly method, but it works.

Yep, that's how I used to get my 360 online. You just have to allow connection sharing in the connections settings and it should work no problem.

So I've been mucking around with this some more and haven't had any luck - whenever I bridge my wireless and LAN connections I don't seem to get any kind of internet activity. I also can't seem to find 'Internet Sharing' in XP any idea where to look? It's not under anything in the property tabs.
 
@Bhouse563: Appreciate the guide, did help point me in the right direction, but it's for Vista so not everything seems to apply.

 Google search for a Windows XP specific guide turns up plenty of results, but none of the guides themselves seem very easy to follow. I'll try to find one that does. To be honest, it's not too much different than the Vista version.

You want to go into your network connections folder, right click on your internet connection and select properties. Select the sharing tab, and check the box that says "allow other network users to connect through this computer's internet connection" and select the relevant option from the drop down menu to share it with your 360
 
(I'm using vista, but I've done it in XP before and it's virtually the same. A couple of the options might be named slightly differently, but it is more or less the same).

Its possible, but its not pretty.

It's pretty simple and i'm also using this method to get on live in my room.

Put Redhat or Ubuntu on an old PC with a couple of nic cards in it.  Then setup a router in Ubuntu with your network & the Xbox.  Or just buy a router for a few bits.

@SteamPunkJin Sorry about the vista crap, here is a link to what you are looking fo on XP
 
 http://support.microsoft.com/default.aspx/kb/306126

There are few youtube videos on the subject.  I've done it myself as well.

I just did it then. Easy as shit. Also, Thanks. Was wondering about getting live going in my room until I get raped into paying for a wireless adapter. 

I do this. Just turn firewall off on your PC, turn on connection sharing, and the rest does itself.

Ok so I've enabled internet sharing, turned off(an on) the firewall, used both the Ethernet-Router method and a Crossover Cable method (separately of course).  No matter which hardware set up I'm using I run into the same problem every damn time: Once the bridge is active my wireless stops working. It shows as an active connection but receives no data and only gives me the option to disconnect (so it thinks it's connected). Any ideas on what to do ?