Please do not make assumptions, jump to conclusions, and assume that our changelog is wrong.
Just some clarification on this whole situation:
XOS2 beta 1 had a nasty bug. When you used the hdd upgrade wizard, it failed to copy a few important sectors of the harddrive, and because of this, users were unable to sign onto Live with the upgraded harddrive.
This has been fixed in beta 2. Users who did the hdd upgrade with beta 1 will continue to be affected by the bug after the upgrade to beta 2. We may provide a utility to "fix" affected upgrades. Gumba's method is also a reasonable and correct workaround.
People who do the hdd upgrade with beta 2 should not experience this bug, and will be able to sign on to Live.
Although this *may* have been the reason why some live enabled retail games were failing, we believe there may be another factor as well, which is currently unresolved.
We are currently investigating the issues discussed in this and other threads, and will let you know.
--Artifex