Appeal XBox 360 Console Suspension

You can try calling support, but it is against the terms of use to tamper with a console and voids the warranty. I know you say it wasn't tampered with, but if Microsoft receives a console and notices any signs of tampering, they won't touch the console. You agreed to this when you signed up for their service.

From the code of conduct:

12.  Service Operation and Equipment.

The Service may only be accessed with an Authorized Device or by logging into your account via Xbox.com. You agree that you are using only authorized software and hardware to access the Service, that your software and hardware have not been modified in any unauthorized way (e.g., through unauthorized repairs, unauthorized upgrades, or unauthorized downloads), and that we have the right to send data, applications or other content to any software or hardware that you are using to access the Service for the express purpose of detecting an unauthorized modification.  Any attempt to disassemble, decompile, create derivative works of, reverse engineer, modify, further sublicense, distribute, or use for other purposes the Service, any game, application, or other content available or accessible through the Service, or any hardware or software associated with the Service or with an original Xbox or Xbox 360 console is strictly prohibited and may result in cancellation of your account and/or your ability to access the Service, and the pursuit of other legal remedies by Microsoft.  Microsoft may take any legal action it deems appropriate against users who violate Microsoft's systems or network security, this contract or any additional terms incorporated or referenced in this contract, and such users may also incur criminal or civil liability

My first mistake was letting my 13 year old go through the sign up process vs. myself.  Therefore, I didn't see or read the fine print.  I've called the main 800# and they haven't been able to help me.  Any other ideas?

If microsoft says they wont touch it due to the sticker missing then they wont touch it. You will have to get a new xbox if the one you sent to microsoft is faulty

it might be because either you bought from another person who tampered the 360 or one of your kids went to a tampered games online and was reported by someone.

Unfortunately if the sticker is broken, it voids the warranty. They will not accept it, even if you pay for the repair.

The bottom line is, if you want to keep on playing on an Xbox, you will have to buy a new one.