My brother and I just purchased this game yesterday via digital download on xbox live. Both my brother and I bought our xbox's during December of 2013. We also live within a few miles of one another, and both have Time Warner cable.
As you may have figured since I am posting here, we CANNOT connect with each other in this game. Game seems very fun, and interesting. I am extremely bummed out that we can't play together, as that was the main reason we bought the game.
If the early model xbox is the current culprit theory, then I can confirm that with two early model Xbox's this issue is happening.