You can use Live with dial-up using Internet Connection Share, but It will boot you off a game if you try to play online. This is mainly used to download content from the marketplace on 360, or content for games on Xbox.
I'm not sure how to do it, but I think it involves conneting using dial-up, and plugging an ethernet cable in the ethernet port, and connet the other end to the Xbox. Go to Network connections, right click the dial-up, and share it to the ethernet port.I have seen forums where people say they can use dial-up on the xbox 360. Could anyone tell me how? please!?
I think they are just messing around to sound cool, but xbox live REQUIRES broadband.
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