I was told to change the MTU setting of the Actiontec, so it will work with my Xbox. How do I change the MTU?

There are problems with doing this.
The MTU setting is not the cause. The default MTU setting for Actiontec routers is 1492 for PPPoE connections, and 1500 for DHCP as well as Static connections. To change the MTU setting, log into the Actiontec device and adjust the MTU settings as required. (But, the MTU setting is rarely ever the problem.)

The actual problem is that the ports used by the Xbox, are not open for incoming traffic. There are two ways this can be changed.

  1. Enable UPnP (Universal Plug and Play). Many of our routers and modems are delivered with UPnP disabled for security reasons. Make sure the Xbox is properly configured for networking. The Xbox should be configured as a DHCP client, with a proper HOST name and UPnP needs to be enabled.
  2. The other way is to open the ports needed by the Xbox, using the Port Forwarding or Applications Forwarding features of the Actiontec device.
  3. Use the DMZ hosting feature in the Actiontec device instead of Port Forwarding or Applications Forwarding. This will put the Xbox outside of any firewall controls of the Actiontec device and open ALL incoming ports to the Xbox.

Note: DMZ Hosting, Port Forwarding or Applications Forwarding can NOT be used at the same time for the same device. It may also make your network accessible to intrusion.

If the problem persists after using the above steps then the issue is MAY NOT be with the Actiontec device but will be either an Xbox Service or the Xbox console itself.

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