SOLVED:
Follow these steps to successfully connect your Xbox 360 to your Windows 7 PC:
ON YOUR PC:
-Enable ICS by navigating to your network adapters and right clicking on your incoming wireless connection and go to its properties. From there choose the "Sharing" tab then choose both check boxes. Next we will enable port mapping and open up the xbox live ports. Choose setting under the sharing tab and click on add. From here you can input all required ports to connect to xbox live. You can find out more about port mapping by clicking the link below:
(Note that port forwarding will only work if you open the ports on your router as well as your computer. So be sure to do so prior to connecting to xbox live.)
http://support.xbox.com/en-us/pages/xbox-360/troubleshoot/kb/xbox-kb.aspx?kbid=908874
ON YOUR XBOX 360:
Navigate to the following:
System Setting >> Network Settings >> Wired Network
From here go to: Configure Network >> Additional Settings; and choose "Restore to Factory Defaults"
Now choose "Basic Settings". From here input the settings below:
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IP Settings: Manual
IP Address: 192.168.137.2
Subnet Mask: 255.255.255.0
Gateway: 192.168.137.1
DNS Settings: Manual
Primary DNS Server: 192.160.137.1
Secondary DNS Server: 0.0.0.0
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I hope this helps everyone with this issue. If you have any questions or concerns feel free to reply to my post. Thanks.