I recently tried setting my computer to a static IP but it messed up my internet. I gave my ISP a call and they said they do not give out static IPs. Is it possible to play xbconnect or xlink kai with DHCP?

Ya, you should never need to get a static IP from the ISP to play, DSL changes the IP quite frequently, XBC/XLINK/Gamespy don't worry about your external IP address, they're just concerned with your internal ones (the ones in your house locally)