Im planning on getting a better connection, and right now i have 1mpsb download and 250 upload, and im planning to up grade to 2mbps download and 800 upload, is there a noticible differnce between them, or is it better to just get 5 or 7, mbps?

If the price difference is large, I'd say don't bother. Basically, even low-end connections are held back by volume. That means that from 3PM until midnight or so, there is high volume on your ISP's "upramp" to the internet. Getting a higher-bandwidth connection will help some, but if you're already getting 512kbps constant download or so, then odds are it's the servers you download from. For the casual user (including Runescape), it's plenty fast, as ping is more important when doing something "live" than bandwidth is.

so 2 mpbs wont really help me on xbl, i need a fast enough connection so i can use the computer and go on xbl at the same time without lagging on xbl. Im useing a wired router. Or is it impposible no matter how fast the connection is?

I have 3mb/s download and I can comfortably play Halo 3 while someone else is on the computer (like right now ).

Ok then im probably going to get 2mbps, cuase right now as soon as someone opens up youtube, or miniclip i lagg so much i can see every bullet that comes out of my br.