So im wondering how do you screenshot the game, like images of your character on xbox360, without being connected to xbox live or the wifi/internet for that matter?

A hand held camera.

Not even trolling. I use to take pics of my OB and Morrowind characters with a camera.

Connection to a computer and video capture software and/or USB capture device.

Or, as mentioned, camera (no flash). As long as you're not using an old-style tube TV that works well enough to show off your chr.

you can't...

You can....it just doesn't have the ability natively, so to speak. Essentially you'd be playing xbox through your computer vs. your TV, or perhaps maybe you can "capture" it by sending it to a DVD recorder or something. Not sure about that. Altho I read once somewhere that a few games did allow it somehow, don't know if that's true.

^ Yes, this is the only way I can think of. You'd need something like a PVR: http://www.hauppauge.com/site/products/data_hdpvr.html

Then the theory is, with the right editing software you could effectively "freeze" a snapshot of the video, and viola. It's how I'm planning to post the screenshots of my character when I get the game. I just hope iMovie let's me do it when I edit the footage.