Network
Access to high-speed Internet is a requirement to play online with your Xbox 360. Once the connection is made, go to the System Settings menu on the machine, select "Network Settings" and then "Test Xbox LIVE Connection."
Xbox LIVE
Xbox LIVE is the online service available for the Xbox 360 and is available only with a Windows LIVE account. An account can be set up at the LIVE website. During the sign-up process, you will be asked for your age, your e-mail address and your password. If you already have a Hotmail, Windows Messenger or Zune account, you also have a Windows LIVE account.
Join Xbox Live
To join Xbox LIVE, go to the profile menu and select the option to "Join Xbox LIVE." You will be prompted to enter your Windows LIVE e-mail, password and birth date. You can then choose which membership type you will want and a gamertag, which is your screen name for Xbox LIVE.
Xbox Live Accounts
As of June 2010, Microsoft offers two different types of Xbox LIVE accounts---Silver and Gold (Gold is also called "Premium Gold" on some packaging). Xbox LIVE Silver allows users to browse the Xbox LIVE marketplace, buy new items with Microsoft points and add friends. Gold accounts have all of these features, along with the ability to play multiplayer games online, access to party making tools, priority access to the Xbox LIVE marketplace and use of such services as Netflix Instant Watch and Facebook.
Payment
As of June 2010, the annual fee for an Xbox LIVE Gold account is $49.99. This can be paid online with a credit card once you have a connection to Xbox LIVE. The Xbox LIVE Silver is the default for Xbox LIVE, and the account will automatically work, free of charge, as soon as you connect to Xbox LIVE