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Yeah without the £10 monthly subscription it'll do nothing more than the basic digibox. Plus you will need a twin lnb with two cables running to the box.
You'll get a wireless controller with the premium pack anyway and I'm sure you'll like it once you've tried it. It works every bit as good as a wired controller and can be connected with a wire if you buy the play and charge kit.
You have to setup the connection by launching the setup utility within the 360 dashboard. It'll then instruct you to be sure and have the correct software installed on the PC. Follow the instructions from there.
Have you installed the software found here?
http://www.xbox.com/pcsetup/
Unfortunately the site appears to be offline right now.
Which version of Windows are you running?
I solved the problem by installing Parallels and running XP Pro under emulation. I can now use XP for my usenet downloads and switch between OSX and XP with ease. Very impressed so far.
Well it arrived yesterday and it's excellent :) Never had alot of time to use it yesterday but will have tonight.
I'll also have to figure out the best way to download nzb files from Newgroups using the Mac.