Ive been trying for several hours now, and it just connected and im gears3 matchmaking. TRY yours!! im in CALI.
It lets me stay on for a little then kicks me back off. *shrugs* I'll come back to it later in the day.
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powercycle your modem and router, and reset your xbox. should get you back on.
There is still a Service Alert, yes, but some people have been reporting they've been able to get on. :)
support.xbox.com/.../xbox-live-status its still offline
Thanks for the update! :)