Live wasn't very good in the first year of 360 for me at least. It almost made me give up on console online gaming entirely.
Voice was pretty bad, everything I said came back as an echo. Nothing seemed to help. Bought a new headset, no use. When we played PGR3, all 3 of us could talk during track selection, but only 2 of us during a race? In Test drive unlimited 8 out of 10 games resulted in a disconnect, unable to connect to host. Same in Gears of War. And when it worked I could hardly understand what anyone was saying anyway except for the obvious swearing.
Cancelled live after a year then got a ps3. Tried burnout paradise online and it actually worked. Had a lot of (mostly silent) fun online in f1 championship edition, gt5 prologue, wipeout hd. Bought a 2nd hand ps2 headset with usb and I can actually talk to people without echos.
I tried live again in a free weekend, the echos are gone yay. Still couldn't understand much what anyone was saying. Haven't tried it since they chanced the voice codec.
I still don't spent a lot of time gaming online (<5%), so no point going back to live. I just buy multiplats for ps3 in case I want to try out the online portion.
