This is your problem.  Has nothing to do with NXE or the like.  Simple fix that takes 5 minutes.  As much as your float around here I figured you would have been aware of this.  It's been a known issue since 360 launch... While the license is still on your original console you have to be signed into XBL to access the full version.  Transfering them over to the new console will allow you access both on & offline.

If you send your 360 to Microsoft for repair they are supposed to do this process for you.

Yup, after you have hit the download now option and it has downloaded just press B to go back two times and you'll be at the main menu and presto, it will work.

i just played streets of rage, went back out to the marketplace and rebooted streets of rage, it once again asked me to unlock the full game, i did the above method again and bravo.

Its in your download history so it will never suddenly vanish.

I know about the whole re-registering your old xbla games again but it seems a real pain in the ass especially considering it only takes 4 seconds to re-download it and Just press B two times.

LOL. If this is the problem I am frankly dissapointed Skeeuk.

I miss your Guile avatar...

Just hitting redownload will do nothing. You HAVE to do the license transfer process that GooseGaws posted. It's a simple DRM that keeps people from downloading copies of games on other peoples hard drives to access for free.  Since all accounts on a machine can access the games a single account downloads you could see how easy it would be for a gamertag to download a bunch of games for their friends to play...

If you send in your console for repair Microsoft now does this process for you so it's seemless to the end user.

If you sell your console on ebay or just buy another (ie like Skeeuk) Microsoft has no way of knowing your did this so the have they manual process for these individuals...

I was in the exact same boat. I bought a new Falcon to replace my first gen system (wanted HDMI) I did the manual transfer process. My 360 pooped out this summer and viola I got my new one back all ready to go.

ok ive read the licence transfer article, il give that a shot.............but ive had console exchanges before from my 1st 360 launch console all i did on them was nothing the content that i downloaded from marketplace worked fine, eg psu expansion worked with the newly aquired console i cnt recall having o do any licence transfers..........but if thats the only way then il hav to go ahead with a licence transfer

@jason80..............mines the falcon version also with the hdmi, a lot quiter also...........but i kept hd and my marketplace goods still worked when i plugged my old hd onto the new arcade model, so this new prob has certainly confused me. il deffo give the transfer thing a shot though, my other arcade games work fine they came on a disk with the newer 360 i bought