IGN will provide all the answers you desire in their handy Elite FAQ.
well there was some information in there that i didnt already know, like not being able to copy over rented films etc and not being able to watch brought content unless your signed into XBoxLIVE.
yeah, the rights to content over the 360 is really garbage imo. i've bought tons of arcade games, and extra content for my games, and they dont like to work, unless the profile that originally dl'd them is online on XBL.
it's crap b/c i'm on my 3rd 360, and sometimes (not often) the internet will be down for a few hours, and when I want to play, lets say, Oblivion, it wont load all the content... b/c some of it is on my 1st 360, some on the 2nd, and some on the 3rd... it's totally f'd up... but it prevents pirating i guess... that or MS is anal about their content (which, both is probably true)
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