Being Newb: Xbox 360 help!

[CrispyGoomba]

This might be long so I'll cut to the chase.

This generation, all I've ever had is a Wii (Not counting handhelds). This Christmas, I'd like to play catch-up and get a Xbox 360. But I'm confused on which type of Xbox and internet cables to get.

I heard that the arcade version doesn't let you download DLC, so I want to get the version that will let you be able to do so. Also, how much is it?

On Christmas morning, I would like to call up my friends and play some matches with them. That being said, what all do I need? I heard that I have to need an ethernet cable (And yes, I know what that is, I'm not that big of a noob) of some sort. Does a mic come with the Xbox bundle or do I have to buy one?

Thanks for anyone who responds to this blarg of a post!

[Koopzilla]

I don't know for sure about the cables but I'm assuming CAT5 will work (I've never hooked it up to the internet because it costs money to get online, plus without wireless I would have to run about 75 feet of cable across my floor and up the stairs.) I would just buy the newest version. Also, I would try not to keep it turned on too long (I even unplug mine from the wall when I'm done) and leave a couple feet on each side of it to keep it from overheating and getting RRoD.