I have a modded Xbox, so I can't play on Xbox Live. However, there's a program out there called "XBConnect" that's free, and all you have to do is have an Ethernet cable (I suggest getting a Crossover Ethernet cable), and a reasonably fast internet connection.
The great thing about XBConnect is, that you can have four players on one Xbox playing split screen, while all four of the players are online playing with other people from around the world. It's great.