I had the xbox running through an ethernet bridge (Linksys WET11 v2), and it mostly worked in this configuration. To be excruciatingly clear, the original configuration had the xbox connected through air to the WRT54G, which was connected to the BEFSR81, which in turn connected to the cable modem and the internet. This configuration mostly worked, but there were issues with lag, and the xbox would occassionally go into its recovery procedure, where it would complain about not being able to resolve the DNS. When I first connected this configuration, it was very problematic, requiring me to power cycle the modem, both routers, and the xbox, but then it eventually settled down to every couple of weeks needing a reboot.
So, I decided to improve things... {And I need the WET11 back for it's original purpose.}
I put the connectors on that extra cat 5e cable in the wall (who doesn't have 3 or 4 spares in their walls?), and connected the xbox via hard wire to the BEFSR81 router. I tested the cable with a standard ethernet buzz box, and all the connections map out as 'ok'. At first, this worked fine - that lasted for a couple days with no issues. But now, the xbox is not happy. It started going into its' recovery procedure about every 10 minutes.
I've updated the BEFSR81 firmware to the latest available. I had turned off a bunch of 'well known ports' such as FTP, because I'm not serving anything from behind my firewall, and I wanted to prevent any potential trojan horse from pumping data out through my firewall - I turned all the ports back on. And I put the xbox into the DMZ. I'm thinking that the ports could not have been an issue, since the xbox was running pretty well through the wireless link. The BEFSR81 would have stopped those ports in the wireless connection, if they were important.
This has helped. My xbox is no longer having problems every 10 minutes - now it is having problems every three or four hours. This is not acceptable, but at least it is usable.
I've also swapped the ethernet connection for the one that the computer in that room has been running for 3 years without issue. {In other words, I swapped the 'new' cable in the wall with the established one, putting the computer onto the new cable, and the xbox on the established cable.} This experiment is still on-going, and it is too soon to determine whether the problem still exists. I am afraid that I am going to find that the xbox still has problems.
So.... Any helpful suggestions? What have I not done that might help?