How to setup pdanet usb tethering with macbook to connect to xbox live?

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I want to use my 4G phone connection to connect to xbox live through tethering.
I have the pdanet app connected to my macbook via usb and have the internet working. Problem is that I can't get the xbox to connect to the macbook via airport or ethernet. This should be possible right?
 
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Problem is with Xbox DNS error. For some reason while using pdanet the xbox can't connect to DNS. I've tried google public dns 8.8.8.8 but it didn't work.
 

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