Things You'll Need
Instructions
Turn on the Xbox 360 and connect it to Xbox Live if you have not done so since the Spring 2007 dashboard update. A screen will pop up asking you if you want to update.
Select "Yes" to update it. The update will now download and install, which will take a few minutes.
Sign into Xbox Live after the installation. Select "Chat &IM."
Select "Sign In." Select "New Conversation" or a previous one on the screen. Pick a contact to whom you want to talk.