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Finally did the license transfer yesterday (M$ notified me by email instead of phone call) and transferred about half of my games to the new 360.  Those games/DLC worked great online AND offline.  I also recieved my Wireless Network Adapter from Amazon.com, yesterday (my Amazon deliveries come to my sister's house so I can avoid fighting my GF over money I blow on gaming).  I took the old 360 online, too.  All of the games still work on that old 360 AND the new one!!

I couldn't be happier and I think it's fair, too.  My kid and I have our profiles and game saves on USB Flash Drives and the games are on both consoles.  We can play whatever we want, wherever we want!!