Xbox Live Slim Wifi on Mac: Problems

So I bought the new Xbox as a replacement for my noisy old one, and was pretty pleased to see that it had a built in Wifi Adapter (Adapter? Thingie).

I’m using mac, with one providing an ad hoc connection for the others in the house, and I assumed the xbox would just be able to tap into this. It can see that the network is there, it just fails to join it at the first step with an IP address error.

You’re smart people - what’s the matter and how can I fix it?

I’d get a router. I have never messed with ad hoc connections supplied by a computer, though, PC or Mac.

Like - a wireless router?

Yes. I have a Linksys WRT160N and have no complaints.

I’m confused with these wireless routers - I won’t need to buy anything else but the router, will I? No subscriptions?

No.

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Apple makes a router.

I have 3 of them.

They work.