Extender Not Found (Xbox issue) anyone?

I have searched the web for my problem with connecting 360 and my computer and I've reached the end of the Internet. I can't seem to find anything on how to fix my problem.

Windows XP Media Center 2005
Xbox360 Elite
Linksys Router WRT54GX4 Firmware Version: 1.00.20
Error Message from MC Software "Media Center Extender Setup":

Extender Not Found
An Extender cannot be found on the network. Your network connections or a firewall may cause this problem. check your connections or disable your firewall and then select Next.

Anti Virus: Disabled
Killer NIC Firewall: Disabled
Microsoft Windows Firewall: Disabled on all connections
Note: There is nothing blocking ports or access in or out of my network.

Xbox360 Test Media Connection
Network Adapter: Wired
Wireless Network: N/A
IP Address: Confirmed
PC Selected: Failed
PC Connection: N/A

DvcConn.log
***********************************************************
Friday, 20 June 2008 22:10:24
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10:10:24 PM : CmdLine: DvcConn launched from DvcSetup.

10:10:24 PM : Checking OS version.

10:10:24 PM : Checking MCE version.

10:10:24 PM : MCE version = Emerald.

10:10:24 PM : Checking only instance of installer.

10:10:24 PM : CmdLine: Connection Wizard.

10:10:24 PM : CmdLine: Security code passed in via cmdline: 6196-2866

10:10:24 PM : CmdLine: Skipping Pre-Run Checks.

10:10:24 PM : Verifying user is Administrator.

10:10:24 PM : Verifying EULA is present.

10:10:24 PM : Verifying MCE is NOT installed on a dynamic disk.

10:10:24 PM : Start conditions met.

10:10:24 PM : Searching device table for unaffiliated bobsleds.

10:10:24 PM : Matching device not found: Entering 15 second wait.

10:10:39 PM : Re-Searching device table for unaffiliated bobsleds.

10:10:39 PM : No matching devices found. Troubleshooting...

WARNING: Unable to detect any third party firewalls.

Can someone please explain to me why my Xbox won't connect to my PC? I am hard wired to the router, all available ports are open that need be from the xbox with anti virus and firewalls disabled and yet I can't seem to connect. When I do Network Settings Test for Xbox Live Connection everythign checks fine. I've tried doing manual settings giving the 360 a random port from 1-50 IE 192.168.1.110 or 140; I can connect to xbox live but not my PC. I am lost for words here, I cannot find a way to get this to work. Does anyone have the answers? Is it even possible to connect the 360 with the PC? I used it before when I had the first generation 360 and with this new one it doesn't want to work. Believe me, I've searched the net. Only results I got were "You have reached the end of the Internet."

Please, someone help me.