Ok.. I should have checked xbox.com first.
QUOTE
What Happens After the Trial Period?
Unless you cancel your subscription before it ends, you will automatically renew to the currently selected renewal subscription type at the then current price, which is viewable in the Account Management section of the Xbox Dashboard. For information about canceling your subscription and the refund policy for your subscription, please see
http://www.xbox.com/live/accounts.
If you choose to renew your subscription, you can use the Xbox Live Dashboard to renew your subscription for 12 months. You can also purchase a Starter Kit or a 12-Month Subscription Card to receive 12 additional months of Xbox Live service after your two-month free trial ends.
If you do not want to continue your Xbox Live subscription, you can cancel at any time by calling 1.800.4MY.XBOX.
Look for specially marked copies of Xbox Live titles in stores now for your two-month trial subscription.
So, where would I enter my 12 month subscription code? Is there someplace in the Xbox live section of the MS dashboard?
I'll go look. :)
-Kenny
QUOTE
Xbox Live Billing FAQ
Two-Month Free Trial
Q: If I want to buy one of the selected games from the store, is it clear which ones contain the Xbox Live free trial card?
A: Games that include free trial cards state so clearly on their covers. A sticker on the front of the box indicates that a free trial card is inside. If you aren't sure, ask your retailer to help you.
Q: Can I get a free trial card without buying anything?
A: No. The trial cards are available only with the purchase of specially marked Xbox Live enabled games or through other promotional offers where a purchase is also required (such as a subscription to a provider's high-speed Internet service).
Q: I am already an Xbox Live subscriber. Can I give my free trial card to a friend?
A: Yes, but your friend will need an Xbox Live enabled game to sign up for Xbox Live using the trial card. Any Xbox Live game or Starter Kit disc will work, including the one that came with the trial card.
Q: Can I set up more than one free trial account if I buy more than one game with free trial cards inside?
A: Yes, you can use multiple free trial codes to start multiple trial accounts on your Xbox console, but you must have different gamertags for each account. You must have a credit card to create an account. Up to 10 accounts can be held on a single credit card.
Q: Does the free trial include an Xbox Communicator voice headset?
A: No, the Xbox Communicator is sold separately.
Q: Do I need an Xbox Communicator to play?
A: You can play Xbox Live without an Xbox Communicator, although you won't be able to use voice chat during games; that is, you won't be able to talk to other players. The experience is way better using the Xbox Communicator.
Q: Do I have to purchase a Starter Kit after the two month free trial expires?
A: No. After the two months are over, you will automatically become an annual subscriber to the Xbox Live service, unless you modify your subscription to another type of renewal.
Q: Do I need a credit card to take advantage of the free trial?
A: Yes, you must have a credit card to sign up.
Q: Will I receive a reminder about the renewal from free trial to annual subscription?
A: You will receive a renewal reminder e-mail when you start up, and you will receive an additional reminder e-mail 30 days before the end of the trial period. You can cancel your trial subscription in the dashboard or by calling the Xbox Live support line.
Q: What if I forget to cancel when the two-month free trial is over?
A: Your account will be converted to an annual subscription, which you can cancel at any time by calling the Xbox Live support line.
Q: Can I use a 12-month subscription card to renew my trial subscription?
A: Yes. If you enter the subscription code from your 12-month card in the subscription area of the Xbox Dashboard, your two-month free trial will be modified to a 12-month subscription.
Q: When I switch from the two-month free trial to an annual subscription, will I lose my stats?
A: No. All account specifics such as your gamertag and friends list remain intact through the switch so that you can continue to build your legend online.
Q: I am already an Xbox Live subscriber. Can I use my two-month free trial card to renew my subscription?
A: No. The two-month free trial card can only be used to create new Xbox Live accounts, not to renew existing accounts.
Annual Renewals
Q: I bought a Starter Kit last year and I am up for renewal soon. Will my current subscription renew into a monthly offer or a yearly offer?
A: If you allow your subscription to auto-renew without doing anything, your subscription will be renewed into an annual subscription on your one-year anniversary date. If you prefer to be renewed into a monthly offer, you must modify your subscription section of the Xbox Dashboard by selecting Monthly from the renewal options.
Q: Can I change my gamertag at my upcoming renewal period? I'm tired of the one that I selected last year.
A: Because the Xbox Live service strives to provide an online community atmosphere, you cannot change your gamertag right now. Friends lists, stats, and other elements of the service remain consistent if gamertags remain the same.
Q: If I enter a subscription code from a 12-month subscription card or Xbox Live Starter Kit to renew my initial subscription, what will happen to my initial subscription?
A: If you currently have a 12-month initial subscription (from a Starter Kit or 12 month subscription card code) and you modify your subscription by entering another subscription code, your current subscription will not be affected. Your renewal subscription will be modified to an additional 12-month subscription that will begin after your initial subscription ends.
Q: If I enter a subscription code from a 12-month subscription card or Xbox Live Starter Kit after my initial subscription has already been renewed, will I be charged the full amount for that renewal subscription?
A: If your initial subscription has already renewed into a monthly or annual subscription and you modify your subscription by entering a code from either a 12-month subscription card or Starter Kit, your active subscription will be prorated and you will receive a refund for any unused time on the service. Your new active subscription will be a 12-month subscription that begins on the date that you enter the subscription code.
Monthly Renewals
Q: I don't want to pay for a full year of Xbox Live, but instead want to pay monthly. What do I need to do?
A: Specify in the Xbox Live Now Dashboard that you want to renew into a monthly subscription. Once your current subscription ends, you will be renewed to a monthly subscription.
all about the xbox live accounts renewals