One of the biggest issues people have had with the Xbox 360 is that if your system died and had to be replaced, your downloaded content wouldn't work on the new system unless you were logged into Xbox Live. Well, those days are long gone as Microsoft has unveiled a DRM Transfer Tool on Xbox.com.
You just have to follow the steps on that site in order to transfer the licenses to your new system, and then re-download all of the content. Also, if you have to send your system in for repair and get a different one in return, the licenses will already be transferred as part of the repair process.
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