Okay, firstly thanks for the response from everybody.
Coke Robot: You can share a 3G dongle's internet to connect to Xbox live, as many people have been able to do so, and i have also when I had windows 7 and xp.
pparks1: I do know of some other ways to share the connection either virtual router plus or purchasing a router. I have considered purchasing a router, but I would first need to find the correct router which would be able to cater to my needs. I have also tried using virtual router plus, which can be used to share my dongles internet to wirelessly connect my Xbox up. What annoys me is that you could do this on windows 7 without using a program.
However,
goodintentions: I have tried using virtual router plus, and at first it seemed great and was working perfectly. But then i discovered i would have to purchase an additional version of virtual router to be able to share my dongles internet. If it was free it would be fine, but i don't want to purchase something that may not work correctly.
So does anyone have any other suggestions? or could anyone point me into the right direction to purchasing the correct router required for my needs ?