Finally got it working. I had to assign an IP address of 192.168.0.1 for the NIC in my PC, and then in the Dash, set the xbox IP to Auto, which then assigns the NIC IP as the gateway. I then set the DNS setting to manual and entered my DNS servers of my ISP, which i found using the "ipconfig.exe/all" in dos.
The official xbox.com site does not explain any of these proceedures at all. With very little knowledge of networking myself, these type of issues can be confusing to a lot of users, which do not know of these things. They need to update their site regards to my problem and others too, as i spent an entire day searching for anwsers, as simply you just wanna plug in and play. Sorry if i'm ranting on, yet this totally pissed me off, but i'm sorted now
Peace!!