see if this video helps at all./
at 1:50 is where I think you need to see.
It sounds like xbox is not recognizing the wireless adapter.
follow the steps below and see if it becomes recognized in the menus.
shut down xbox
unplug wireless adapter
start up xbox
put wireless adapter back in.
try the USB ports on the front of the xbox.
If this doesnt work you will have to contact xbox and request a new one. They might request that you show proof of purchase.
is this adapter wireless N capable?
Make sure you click accept in my reply so i get credit for answering!