Somehow the Windows Networking Problem has evolved into something tremendously horrible. I was able to get Windows (XP Pro, SP2) to connect to the Xbox by setting the Xbox in the Netgear main ethernet port, then making my computer the slave in any of the 1-4 slave slots. This way, my computer thought that the Xbox was the internet, so windows configured itself to be able to access the Xbox. At this point Windows properly applied itself to the router IP. Only I was not able to talk to the Xbox in this configuration (probably because of a bad router setting), so I removed the ethernet cords and connected the Xbox and computer directly with a Cat-5 cable. When I did this I had a connection with my Xbox up and running for about 30 seconds, then Windows would reconfigure itself to what it thought I wanted (which I don't), and kick me off my Xbox.
So after all of this, I have concluded that the only way to talk to the Xbox, besides Microsoft fixing the problem, is to properly use a router and connect through the router ports. I love how Microsoft thinks that it's best to let the computer configure itself, and completely took away my ability to modify my internet connection. Thanks again Microsoft!
For now, I am going to try to deal with just not connecting to the Xbox, unless if I have an urgent need to fix something. The only items that need to be placed on the hard drive are Nintendo 64 roms and some updated XBMC files. Speaking of which XBMC just upgraded to v. 1.1.0 today!