Right here's what has happened I previously owned one of the original Xbox 360's until late November when it stopped reading discs and opening the disc tray altogether so after getting advice from people on the internet and my local video game store. I decided it wouldn't be worth repairing but instead it would be better to get a new Xbox 360 Slim. So after Christmas I gathered my money together and bought a Brand new Xbox 360 Slim in the sales. After I had cleared out all my old xbox stuff and unplugged it all I started to set up my new xbox following all the instructions, After it was all plugged in I transferred my XBLA via Transfer cable along with all my saved data from my old Xbox onto my Slim. After it was all transferred I went to sign in to my XBLA and it came up saying there was a system update.(There was an update in autumn but because my old Xbox wasn't working properly it wouldn't let me update it at the time) so when I click Yes to update it, it loads but then comes up saying It is unable to update. I was confused so I went to test my Xbox live connection. Xbox -- Router ,this part was fine, Router -- Internet ,this was also fine, Internet -- Xbox Live ,For some reason this failed, and it still won't connect over a week later So does anyone no why the 'Internet' won't connect to Xbox live my old Xbox before it broke connected just fine. In-case you need to know on average I have a 2/4 bar connection but it occasionally fluctuates to a one bar connection which my old xbox was fine with does this mean the Xbox Slim needs a better internet connection than the original ? Please Help any information on what the problem is and how to fix it would be helpful no matter how insignificant.
If you're connected to internet, but not live, I doubt it would help to move your xbox closer to your router. There could be several reasons for this error. Do you get any error messages? Either way, I suggest you take a look at this guide:
It will take you through the most common connection problems. Hope this will help you out. If it doesn't, please post back with any error messages, and I'm sure someone here will know the answer. Good luck:-)