Sorry Law, I have to disagree. If only one device can connect at a time then why can he get two devices to connect, the Xbox, and the first computer? Now it is true that only one device can connect at a time, but not in that sense; and that only makes it very inefficient. Think of it like a party line, only one person can talk at a time. Yes routers and switches are incredibly more effective and a lot better, but I don't think that's the problem.
We used to have hubs in our offices, until we upgraded. In some offices we had as many as 24 people connected to a hub, many of whom were online at the same time.
b1gapl I'd check your network card. If using windows xp double click My Network Places, then click on View Network Connections. It should show your NIC under Lan or High Speed Internet. If working correctly it should say something like connected, under the title of the NIC. Make sure there is a green light lit on the NIC itself. If all that passes try pulling your network cord out and putting it back in. Try pinging another computer by going to Start --> Run --> and typing cmd --> then type: "ping 192.168.0.X" (X = the IP of the other computer). Also, after pinging the other computer, type "ipconfig /all" in the command prompt and copy and paste the output here.