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Obviously he got his Mogul connected to his computer for internet sharing, then is using ICS to bridge that connection to his Ethernet port, then has the 360 hooked up to that Ethernet port to give him internet. Should work.
What I don't buy is his claim of lack of lag and, in particular, he went too far saying it runs well even on 1X. We know 1X sucks ass, so I can't for a moment believe Xbox Live, which already runs poorly at times, would run decently on a 1XRTT connection.
The rest is quite feasible and believable, though.
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