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Some of the major national providers such as Time Warner Cable and Comcast Communications offer support for XBox LIVE without a hitch. You'll want a service that provides at LEAST 1.5Mbps download speed and 384Kbps upload speed to have good online gaming. Naturally, faster speeds make this easier. I have a 7Mbps cable line from Time Warner Cable of San Antonio and I've never had any issues with pings or latency that were the fault of my ISP.
Microsoft sells a wireless USB dongle for the 360 system that retails for about $99. It's recommended that you go with this adapter because it's GUARANTEED to work with the 360 system. As for a wireless router I can recommend almost anything from D-Link or Linksys that's 802.11b or g.
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