Okay.  I owned a 60gb Pro for a while now.  It's got about 50 XBLA games (maybe more) tied to it.  Those games can be played by anybody that turns on my console, Xbox Live connected or not. I bought a 250gb Kinect 360 on Friday.

My plan was to give the 60gb 360 away and let somebody in my family play the games.  Well, my game room is too small for me to play Kinect (unless I stand at an awkward diagonal angle from the TV).  I decided to keep the old 360 and put it in the living room.  I've orederd a Wi-Fi adapter (now only $50!!) and a Kinect power supply (not included with the 360s bundle).

Here's the problem:  I contacted M$ to do a license transfer of my games from my old 360 to my new 360.  That means that every game will be playable on my new 360 by anybody online or offline.  My kid loves playing XBLA games and she prefers playing in the living room on the old 360.  It's working well so far but what happens when my old 360 goes online?  Will she lose the ability to play games on the old 360 (Part of me thinks they'll revert back to demos)?  What happens if I buy a game on my old 360?  Will it be playable on my new 360?

I THINK as long as your account still resides on the old box as well you are fine to play the games on both systems.  I'd really like to know if that is not true since I have a similar situation and I plan on getting another xbox one day. 

^^^Well I know that as long as I'm logged in to Xbox Live and the game is present, I can play XBLA games on any Xbox 360.  I can go to my sister's house and games that she has as demos turn into the full fledged game when I log in or recover my profile.  I know I'LL be able to play my games.  I just want my daughter to be able to play 360 games on the original 360 AND I want to be able to use that Kinect online when my Wi-Fi adapter and Power Supply arrive from amazon.com.

--I wonder if we can log in at the same time, too.  That'd be awesome!

as far as i know it lets you have complete control of you id on 2 consoles. That is the impression I got when I was reading about it and then lead to me getting my transfer cable.

Ok, I'm not sure I completely follow your convoluted tale here but I'll give it a shot.

AFAIK, you will NOT be able to play the same game simultaniously on two different boxes without paying for two downloads. During the license transfer process you can select the games you want available on your new box. So say you downloaded "Joe Blow Bones His Mom" and "Happy Unicorn Funtime" on the old 360 and you are gonna do the transfer, keep Unicorn Funtime on the box your daughter will be using and send Joe Blow over to your new 360 so you guys can bone his mom in slim style. 

It's an inconvenient set up IMO and once you do the transfer it has to stay that way for a year before you can do it again. It's not a big deal for you cause like you said, you can recover accounts and play with your account but it sucks when you have multiple consoles and multiple users.  Another thing you might want to consider now that you have more than one 360 in your house is getting a thumb drive if you plan on playing on more than one box. I know you said you have a dedicated gameroom so it may not be an issue but if you do find yourself gaming all over the place, the drive is so nice to keep your profile on. I have 3 360s in my house and between me and my kids we are always on different machines.

One more thing, if you have multiple players online you can get into open NAT issues depending on your router and whatnot. 

You've been extremely helpful!!  I'll leave the kiddie games on Xbox 1 and the mature games on Xbox 2.  I have an external HDD so I'll just use that like a thumb drive (I've done it before). 

I tried the license transfer on Friday (www.xbox.com/drm).  I had some problems and had to call M$. The MS customer service chick (with the sexiest voice, ever--AND she actually engaged in small talk with me!!) said it would take up to 10 days to actually complete the transfer (!?).  At which point will I get the opportunity to decide which games go where?

I am only familiar with the online process but I think you may have screwed yourself. If you went through it over the phone and just told Mrs. Sexy Voice to transfer all of your shit then no, you won't be able to choose then, the choice would already have been made to transfer everything. When you do it online there is an actual list of all of you purchases and you'd go down the list checking off what you want to transfer. Only thing I can think of is maybe you can call customer service again and explain your situation, maybe they can get it to how you want. It kind of sucks though cause you'd have to go through the 50 titles one by one over the phone. Doing it online is the way to go if you have the option.

^Then it looks like I have a call to make.  As long as I keep the original offline, I shouldn't have any problems (I hope!  I will be transferring my profile between consoles via the portable HDD).  I may just cancel the whole transfer and keep the Slim as my personal exclusive  console and keep the original as the home---you know what?   This is too convoluted.  Damn, I hate DRM.

Yeah, you better keep that old xbox offline otherwise you have to transfer your profile back and forth every time and connect to the internet on the old console every time you want to play those games.

You probably would have been better off not transfering the content to the new xbox. I assume that the new xbox is always connected to xbox live...as long as you're using the profile that you bought the games with on xbox live, you can play them. The second console would be able to play those games with any profile, online or offline if you had kept the licenses on it.

You can have two 360's and play XBLA games online as long as you're using the same account.  I have two 360's as well and I constanly use them both (I keep my profile and most save games on a USB drive).

I believe the license transfter is only moving games from one 360 to the other without redownloading them.  So if you bought an XBLA game today, you could download it on both 360's without a care assuming you're using the same account.

The only thing I'm not sure about is having the same profile signed on it multiple places since I've never really needed to try that.

-edit-

Note that if you do bring your other 360 online without keeping your profile on a USB stick, you'll have to do the annoying profile recovery every time (it's all automatic, it just takes a few minutes to do which makes it suck).  It's not that hard to keep a USB stick in a 360, though it means one of your USB slots are always taken so I don't know if that's a problem for you.