This test verifies that your Xbox 360™ console has a valid IP (Internet Protocol) address.
If your console does not pass this test:
Confirm that there are no other devices on your network with the same IP address.
If you are using a router or gateway, verify that it is configured to assign IP addresses to network devices (DHCP-enabled).
If you are connected to a router, make sure that your console's Ethernet cable is not connected to the router's LAN port rather than its WAN port.
If you are connected directly to a modem and your ISP (Internet service provider) requires PPPoE settings, verify that your PPPoE user name and password are correct. If your ISP doesn't require PPPoE settings, remove the PPPoE user name and password settings.
If you are connecting directly to a modem and have replaced a device that was connected to your modem with your Xbox 360 console or another device, turn the modem off and back on before connecting the new device.
If you are using a static IP address from your ISP, verify the address with a your provider.
If your console is connected to an ad-hoc network (in which devices are connected directly to each other), it will probably not pass this test. If your IP address is assigned automatically and your ad-hoc network does not include a DHCP server, this does not indicate a problem. The test is properly reporting that a DHCP server could not be contacted. Xbox Customer Support does not support the use of ad-hoc networking to connect to Xbox Live.
If you're using an ad-hoc network without a DHCP server and you can't connect to Xbox Live, check a different diagnostic test for the root of your problem.
If you're having trouble confirming an IP address, please see the following list to get helpful troubleshooting tips for a particular error.