As it says, bought it three hours ago but still cant play live.
Any idea how long it takes or if its a problem that needs to be sorted?
Your account shows gold on the forums here. Have you signed out of your Xbox and signed back in?
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Yeh several times. It showed gold as soon as I had purchased online, just not on the console. It appears to be back now, so the answer to my question is around three hours
I know there are issues right now with LIVE. support.xbox.com/.../xbox-live-status
Users may experience difficulties with the following services:
A subset of users will be unable to connect to Xbox LIVE.
We are aware of the problem and are working to resolve the issue. We apologize for any inconvenience this may cause and thank you for your patience
Can you try recovering your account? That typically solves this issue. :)