I connected in this way for approximatly 3-4 months when i was connected in this way i went through around 8 -10 most of which had the same error i can't remember the exact code but console displayed 3 red lights and error message i asked guy at the store were a kept returning my consoles and he said the error was to do with hardware failure on the ethernet port. i've gone through about 12 -15 (wasn't really counting) xbox's since i bought my 1st console 2nd hand a few of them stopped working for other reasons but l went through the most of them when i shared my laptops internet connection through xp. You can connect to xbox live using this method but i personally wouldn't recomend it.
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