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You can redownload it but it won't be tie to your new console.  You will have to be on-line for it to work.

I think MS has got the worst DRM policy ever to be put in place.  If they have better DRM or better transfering scheme I am sure as heck would spend a lot more MS points on games.

They really should give customers option of where they want to "tie" their gamertag to.  May be allow you to do it once every 6 months or when you replace your console.  Go to live and then have option of tie the tag to new console S/N and after that all the items you bought will work on or off-line with new console.