Thanks for the reply.
Well I ventured into finding out how to disable the virtual eeprom. The only way I discovered was to place a blank file named EEPROM_off.bin in the E:\ root directory. I did this and rebooted, but it didn't change anything.
It seemed to grab the DNS ip's on it's own in DHCP mode, though I have a sneaky feeling that might have been grabbing them from the ones I entered for the static option. I don't know :/.
Also, the reason I don't just use a router is I don't have have the money to put out for one, and until I modded the xbox it was able to connect with my laptop connected at the same time, too.