It sounds like the PC and X-Box are both set to use Dynamic IP addresses, but you don't have a DHCP server (normally the job of a router), so you end up using 169.something addresses. It's possible that these addresses change every time, so you keep having to set up again.
I'd suggest that you try assigning a static IP address to each of the boxes and see if that helps.
Not sure how you do it on the XBox, but on the Vista machine, go to
Control Panel
Network and Sharing Center
Manage Network Connections
Right-click on your network card and select Properties,
Scroll down to Internet Protocol Version 4(TCP/IPv4) and click on Properties
Click on "Use the following IP address" and enter
192.168.10.1, subnet mask 255.255.255.0 leave the gateway blank (or set it to 192.168.10.255 if necessary).
On the XBox, set the IP address to 192.168.10.2, subnet mask 255.255.255.0 and see if that makes any difference.