QUOTE(from saintsrow.com forums)
Product Update for SR
We are working on a Live product update for Saints Row. It will fix various problems found after release, in both single and multiplayer.
We are working hard on the update now. Here are a few (but not all) of the issues we expect it to address:
Improvements to the way the game handles packet loss and bandwidth management between players. This will address the issues commonly cited as lag, and general synchronization problems between the players clients (vehicles/players warping around, etc).
The system for rating a players quality-of-service has been improved, and made less conservative. This means youll see many more matches with 10-12 player limits.
Fix for the clothes stealing exploit in multiplayer
Fix for widescreen formatting issues in certain resolutions
Changes to Matchmaking phase, to get players in the game faster
At this time, we have no ETA on when the update will be available. We want it to be available soon, but we also want to make sure it addresses as many issues as possible.
Microsoft provides product updates to anyone with a Live connection, even without a paid membership.
Problems using Gang features, timeouts when using Gang menu
Gangs are managed by a dedicated set of servers. During peak hours on release night in North America (Tues 8/29) those servers hit an unforeseen limit. Yesterday (Wed) the server team increased that limit, and since then it appears to have addressed the problems with Gang features.
Were monitoring this closely, in any case.
Problems joining Party Lobbies
This was actually due to the gang server problem, as described above. The fix for that also addressed the timeouts when joining a Lobby.
A related issue here is the Lobby connect dialog doesnt allow the player to abort when the gang server is not responding. That particular aspect will be addressed in the SR product update, in case the servers have similar issues in the future.