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xBox can be hooked up to the router via ethernet cable so the wireless adaptor is not a must have. Just makes it easier to relocate.
You don't need to spend a ton of cash on the router. I like linksys but have had fine results with d-link as well. My preference is in the user interface, the linksys stuff is just thought out better. Reality is after you set it up you may only need to access the interface once every year or two so may not be worth additional coin.
Scott
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