I checked around and it is generally agreed that an ethernet hub is the best thing to use. There is no lag due to signal interference because the ethernet is only based on cables, and you can connect as many xbox's as you have ethernet ports. The thing about wireless routers is that the tiniest things will slow them down so it's best to avoid using them. I'm not just talking about radio waves and things like that, but even the wires in your wall if they are getting a lot of use. I speak from experience.
One time i tried to play Starcraft on my computer using a wireless router to connect to our internet, and the moment my dad turned on the toaster and oven i lost signal. That was a bad day. -_-
Bottom line, when you can use cables. The only draw back i can see from using an ethernet hub is if you have like 50 xbox's for this part, and don't have enough ports. Otherwise it looks like the better choice.
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I will blow them all into dust.
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