While the original xbox live has closed, we will need to wait till there is some kind of emulation available. However, if we still want to play online with other people regardless of the live feature that is still very possible with Xlink Kai. Yes you can set this up on a Windows machine, but it is much simpler to setup on a Raspberry Pi!
Raspberry Pi 2 or 3
1) Use Win32DiskImager (as admin) to write the Raspbian JESSIE LITE SD image to your SD card.
2) Hook up your Raspberry Pi with ethernet cable and HDMI cable to your TV and watch it boot up. It will tell you the IP of the device.
3) On your Windows computer open PuTTY and in the “Host Name (or IP Address) section type in the IP address the Raspberry Pi said.
4) In putty type in the following commands: Copy and right click to paste in PuTTY.
“tar zxvf kaiEngine*”
“sudo mkdir /root/.xlink”
5) Back over to your Windows computer, open your browser and navigate to http://raspberrypi’s_ip_address:34522/
You can now browser for games to join or host. All games supported need to have an LAN (Local Area Network) option. Like for example, Halo 1 or 2. Basically it would be the same if someone was sitting in your house with another Xbox except online!