This usually points to a connection issue. Please try the following:
You can test your connection through the following option in the dashboard:
My Xbox > System Settings > Network Settings > Test Xbox LIVE Connection
Selecting "more info" after the test will tell you if you have open, moderate or strict NAT type:
OPEN; Can play games with any other NAT type.
MODERATE; Can play games with open or moderate NAT types.
STRICT; Can only play against open NAT types.
If you have moderate or strict NAT, the problem you describe is most likely caused by a conflict with another player using an incompatible NAT type. Microsoft recommends an open NAT Type to connect with players as easily as possible. If you have a firewall or network hardware, such as a router, you might need to make a configuration change in order to obtain an open NAT. This configuration change is sometimes called “opening ports” or "port forwarding." For help, see:
Xbox Live requires the following ports to be open:
Port 88 (UDP)
Port 3074 (UDP and TCP)
Port 53 (UDP and TCP)
Port 80 (TCP)
You can test your connection through the following option in the XMB:
Settings > Network Settings > Internet Connection Test
This will inform you of your NAT type:
Type 1; The most open of NAT types: connected directly to the internet without router.
Type 2; Similar connectivity as Type 1, except connected to the internet via a router.
Type 3; The least open of the NAT types.s
If you have a less open NAT type, the problem you describe is most likely caused by a conflict with another player using an incompatible NAT type. Consult your network hardware manual to set up a more open NAT type for your PS3 and you should no longer see this problem. If you have a firewall or network hardware, such as a router, you might need to make a configuration change in order to obtain an open NAT. This configuration change is sometimes called “opening ports” or "port forwarding."
PlayStation®Network and SCEA Game Servers
All games published by SCEA (first-party) and the PlayStation Network may use the following ports for communication with SCEA (first-party) game servers:
TCP Ports: 80, 443, 465, 983, 5223, and 10070 - 10080
UDP Ports: 3478, 3479, 3658, and 10070
Some players have found the following website useful for configuring ports with a static IP to attain a more open NAT type with many different router models: http://www.portforward.com
1. Make sure your router's firmware is upgraded the latest version (very important).
2. Unplug your router for 10 minutes and plug it back in. Some older routers degrade in performance over time until it is rebooted, similar to a PC.
3. Disable any firewall or other network filtering for the game.
4. Enable or disable uPnP (universal plug and play) on your router or the console settings.
5. If you don't care about security, enable DMZ (de-militarized zone) on your router for your console’s address. This turns off all of your router's firewall features for that specific console.
6. Contact your ISP and ask them what your DNS settings should be. Check the Primary and Secondary DNS settings on your console. For more information, see: http://manuals.playstation.net/document/en/ps3/current/settings/connectadvance.html, http://support.xbox.com/en-US/xbox-live/connecting/connection-error-solution
7. If you have a combination modem/router unit or ADSL, try setting the unit to "Bridge Mode" to bypass the router part of the hardware. If this fixes the issue, then you may be able to connect a second router betwen the combination unit and the console to dial the PPPoE connection.
8. If you use an ADSL connection, see if dialing a PPPoEconnection from the console improves the NAT Type. Contact your hardware manufacturer manual or ISP for detailed instructions.