@Shizukat,

I thank you for the help, so now having a better look into this, my setup is just a bit different..Im setup as follows:

Laptop connected to a wireless, (not my own) this is my starting point and all I can control at this moment.
Before as mentioned above, I didnt set any settings just checked the box for ICS and plugged an ethernet cord into the laptops LAN connection and ran that to the INTERNET port on the linksys router and from there everything connected to my router had internet access.

Now it seems I need to do a little bit of leg work which is fine, I dont mind. Im also learning a bit more so its educational for me. The problem I am running into which may be casing me to not be able to fix this issue is when I connect my xbox wirelessly to my router which is connected to the laptop the message I get is:

" Your DNS servers cant resolve the names of the xbox live servers or xbox.com"

So what I think my problem is now is between the laptop and my router there needs to be a DNS configuration of some sorts, but my brain lacks the understanding. Which my IP settings I posted above for the wireless portion they are the same as the DNS on the LAN is the same. Could this be my issue having the same DNS on the LAN as the wireless so then the connection wont be able to share itself through ICS?