1. I heard that it can connect a mouse and keyboard, is this a fallacy?
www.xfps360pro.com
2. How does Xbox live work?
Two options. Silver and Gold. Gold lets you play Multiplayer games (costs R68 per month and you need a credit card) Silver is free and you can join Xbox live with silver but you can only download movies, demos, XBLA games etc. Go for gold.
3. If I had 2 Xbox Consoles, could I connect them and multiplay?
All it takes is one network cable, the xbox's do the rest of the work,
4. Can I play multiplayer games on 2 TV's with 1 Xbox?
Nope.
5. Can I multiplay with PC gamers if I own the same game?
So far Halo 2 and Shadowrun are the only games that can do this so far. Lots more are to come.
6.Does the Xbox link up to you DSL modem with a normal LAN cable?
Mine does.
7.Does the Xbox have a wireless LAN option?
Costs R900 from Take2.co.za. Not worth it. Rather stick a cable from your router to your SeXbox.