downloaded the latest update on my son's xbox 360. his xbox live ran out at about the same time. Anyway we put 1 months live onto his gamertag and then disaster. Everything on his hard drive seems to be corrupted under that gamertag. He had another gamertag on his hard drive which he could use and he is able to sign in to use this 2nd gamertag to play games but unable to connect to xbox live. I've checked the xbox live connection and thats all ok. Anyway we've tried to recover his gamertag back to his hard drive but it keeps coming up with an error saying "can't sign into xbox live. make sure your storage device is connected and your connected to xbox live. then there is an error code 801500034294697295". After this we tried recovering his gamertag to his hard drive on my xbox. no luck. luckily we have a spare hard drive so tried to recover his gamer tag to that hard drive on my xbox. Success. Gamer tag recovered to the new hard drive. Unfortunately when we put the hard drive back onto his xbox it just lost the gamer tag and wouldn't allow him to recover it. Tried to setup a new tag and wouldn't allow that either His xbox is only about a month old (purchased because his old one had the 3 red lights showing) and this all has come about since the latest update. I phoned microsoft help line twice but didn't get any help there, infact they didn't really seem interested in helping much. I've tried everything including deleting the cache on the harddrive. so it now seems he can't play on line with any gamertag unless he uses a different xbox ie mine and he's lost all his game saves that he's built up over the years. Anyone have any ideas. Seems to me like the new update has not downloaded correctly. It seems strange it would allow him to sign in on an old gamer tag and hasn't corrupted that one but won't allow any others from either hard drive.
I apologize because I can't really assist you with your problem but when you said "His xbox is only about a month old (purchased because his old one had the 3 red lights showing)" did you not realize that Microsoft fixes the 3 red rings free of charge? Or did you open the console and void the warranty and buy a new one.
Yes i did know this but his original one was a 2005 model so was out of warranty.It was probably 1 of the last remaining original ones left working until it broke.
If M$ wont repair it then I'm sure there is a person on craigslist or a local shop that repairs rrod 360s and all those other delightful errors for a little under 40$.