Thanks for the reply. Looks like I've pretty well depleted this forum. I have just a couple of things I want to say left before I look elsewhere if this doesn't work.
First, in response to Highwayman,
I think I checked the Xbox IP several times already. Also not sure why it would suddenly block the IP several months later; I'm sure nobody has tampered with any firewall data. I have a headache at the moment so I'll double check in a bit but I'm certain this isn't the case.
Also, I've tried bridging a connection for the wireless and ethernet already. That's a Windows XP version of Internet Connection Sharing... Windows 7 allows you to right click the Wireless connection and select "share this network" for the same thing. Nonetheless, I've tried both ways of doing this and neither works (both should have have worked in the past.)
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Secondly, I have one thing I would like to try but I don't know how to go about doing this.
I don't know much about the internal components of the Interface to wifi-Modem on the computer. It could be possible that I have a driver issue or something like a driver for this which has gone bad. Or maybe after working on this for so long I have altered 1 character wrongly in the "Wireless Connection" properties. Also, I had to update my computer bios recently (did this AFTER it already wasn't working anyway) to fix some monitor issues after upgrading this laptop from Vista to Windows 7. (Actually my screen still glitches once in a while when watching videos but that's a whole seperate thread for another day...) So I'm wondering if there's anything I can download to just "reset to factory settings" for the wireless "program" in network connections. And/or any replacable driver things I can test. I tried updating my wireless modem on device properties when right clicking my computer already, it couldn't find anything newer though.
tl;dr - Wondering if there are downloadable drivers for the Wireless modem, or a "reset to default" option for "Network Connections\Wireless Connection" 'program'
After that, I am completely out of ideas.