I can play PC UI, I can see lists of available servers and can join the chat. When I launch Halo2, every launches properly only no game appears in the list. I can also use XBConnect just fine. Any thoughts?

are you using a firewall ? .. check if kai sees your xbox , hit the magnifying glass at the top .. don't use XBMC kai at all until you can play online using the PC UI first ..

Sorry was not clear in my post. I can play the PC based KAI engine no problem. It finds all of my consoles. After switching that off I then can see people in XBMC in Chat and see all the games. It is just when I say play the games do not show up in my list to select on the XBOX.

Thanks

k well their should be no difference because XBMC is a UI .. try this .. open the kai config and set it to accpet all incoming UI connections at the bottom , load a game and go to system link , load kai on your PC and go to an arena , can u see the game on your xbox ? .. now go back to XBMC and hit xlink , the UI on the computer should disappear , load the game again , can u see it ? ..