Hey all, FINALLY got a answer... figures it would be a woman that gives me the real info on this.
Last night after spending the whole night talking to support and not getting anywhere... I was told to call back today.
I read on Xbox.com forums something about a server update that knocked alot of peoples xbox from getting on XBL. (People who didnt mod their xbox could not connect to XBL 360)
I asked her about that and instantly she said back that Xbox had released a update recently and it knocked people off from connecting to XBL when everything else connected fine. (All tests confirmed except XBL)
She said by Saturday a worldwide XBL update will be released which should allow all effected xbox 360s to get back online.
So here is hoping. =) Anyone hear anything about this yet or have more details on what went on? But when xbox support admits to something being on their end.. gives me abit of hope that maybe I can play online soon...