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The Wireless adapter works fine if you have your router pretty far away on separate floors. I've had my router on the third floor and the 360 on the first and it still worked fine.

One thing to make sure of though-- if you have a Verizon modem with a built in router the 360 wireless adapter will not work until you update the modem. There might be the same issues with other modems too so just keep that in mind if your adapter doesn't find your network.