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My xbox live wont work correctley?

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I have a xbox 360 arcade. I have a USB cord plugged into my Xbox to my router. It says everything is working but its not. If I go to find a match on a game it will never search for one (I had it on for two hour at one time but never found one). People talk about NAT but I dont know how to check that or if its something else to do with it. ANY ideas?

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