After a week of frustration, ending with a law suit. It seemed XBL was back up. But, now new reports are coming in that XBL is down again. The official Xbox.com site reports that:
Users may experience issues performing transactions dependent on Windows Live ID availability including but not limited to Xbox 360 account creation, renewal, recovery, and logging into or creating Windows Live ID accounts. We are aware of the issue and actively working toward a resolution. We apologize for any inconvenience.
Or in simple English, the service is down again.
XBL Arcade seems to be working fine, even multiplayer. But games like Call of Duty 4 etc.. are still down. So, so far XBL games seem to be running smoothly, but other mutiplayer games aren't. More updates soon.
The current update in the situation states:
Xbox Live and Zune Marketplace users may experience intermittent issues with billing related transactions (such as the purchasing of premium content), presence functionality (such as logging into Xbox Live), posting statistics, storage downloads, matchmaking, and messaging.
As of Jan, 09 2008 Xbox Live is back up and running.