How to Remove Ads from New Xbox Dashboard Update

If you've updated your Xbox 360 to the new dashboard update, odds are you are aware of the video ads that are now displayed on every menu.  Though I've already stated my personal opinion that the ad placement isn't that bad, many find the placement and automatic streaming obnoxious. 

Thanks to Reddit user absurdlyobfuscated, there is a potential way to to block them.  He has provided a step by step guide using the OpenDNS "since it's probably the easiest".

Here are the steps you'll need to take to remove the ads from the Xbox LIVE Dashboard.

1. Sign up for an OpenDNS account (it's free).
2. Add a network for your current IP address.
3. Go to Advanced Settings and next to 'Domain Typos', check the box 'Enable typo correction' if it's not already checked and apply.
4. Got to Web Content Filtering settings and set the filtering level to 'None', and under 'Manage individual domains', put rad.msn.com and select 'Always block' and then click 'Add domain'. Screenshot.
5. On your Xbox, go to System Settings -> Network Settings -> (your connection) -> Configure Network -> DNS settings -> Manual, and enter the OpenDNS IP addresses for the primary and secondary DNS servers: 208.67.222.222 and 208.67.220.220.
6. You may need to clear your hard drive cache before ads disappear entirely: System Settings -> Storage -> Hard Drive -> press Y -> Clear System Cache (note that you'll have to re-download any title updates for any games you play after doing this).

If you use a dynamic IP, you'll want the Open DNS updater.

I haven't personally tested this, but feel free to let us know how it works out for you.  Aside from blocking the annoying ads from playing, you'll also be saving yourself some bandwidth space if you are worried about capping.