Distance and Battery Issues
Wireless technology eliminates the need for a cord, which can be inconvenient and even knock things over. The downside is that like wired controllers, they can't always eliminate the problem of distance. If you are too far away from the Xbox 360 console, your controller will not work properly. To diagnose the issue, simply move closer to the console to see if the controller begins to function properly. Usually the lights on the controller will spin for longer than 15 seconds when the controller is too far away.
Battery issues can also cause the lights to continue spinning. As the controller transmits using power from batteries, low power can mean a low transmission signal.
Metal Interference
Many objects can wreak havoc upon the frequencies being sent from the controller to the Xbox 360. Large metal objects, such as refrigerators or file cabinets, can create problems. Always attempt to restart the Xbox 360 first to troubleshoot a controller connection. If the controller still does not function, attempt to move the console or the objects around it. Also, ensure that the Xbox 360 is facing you, as the signal can become distorted otherwise.
Frequency Interference
Many people tend to group together sets of electronic devices. Most of these transmit signals, and any type of frequency -- or the interaction of frequencies -- can potentially interfere with the Xbox 360 wireless controller. Such devices range from cordless phones and wireless Internet equipment to microwave ovens and even cell phones. Interference with the controller will show itself in the form of a flashing green light. The problem can be solved either by moving the Xbox 360 or removing other devices from its vicinity.