Can anyone help me with this xbox live problem?

If you connect to xbox using wired cable, then you don't need to enter any password. Xbox should detect automatically.

However, wireless setting will depend on you router. If your wireless router is protected with password, then yes, you need to enter password. (Whoever that setup your wireless router should know though)

You can get a wi-fi adapter for the xbox, however that is highly-priced (round one hundred$). Another choice, is connecting a computer to the xbox and making use of it as a wi-fi adapter with ICS (web connection sharing) - seek youtube for it if you're fascinated by that. Another choice may also be making use of a transfer, which is sort of a "station" for the cable, wherein you'll be able to attach one more cable from it for your laptop, however shopping an extended ethernet cable is extra realistic - you'll be able to get one in any usual laptop / avid gamers retailer.