Depends on how powerfull your adapter is, the one they got now goes up to 5-20 yards that's pretty far >.>
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You only need that when your Xbox isn't Wireless built in or you don't have router.
you need a special adaptor
No, you cant get on the internet if you dont have it.
You don't. If you have the new Xbox 360, you don't need a wireless adapter because it has built in wifi. But if you have any other Xbox 360 console then you will need a wireless adapter.
No it doesn't. To enable wireless network connection you will need to buy the same adaptor that is used on both the 60GB & Arcade consoles.