I try to connect but it says I am banned from PGR3 Live, but I have never used it before. I have played GOW, but no problems before. I think this is a glitch because other features for PGR3 return the error, server is down.

Has this happened to any one else? What did you do to fix this problem?

The best thing for you to do is contact XBOX Customer Support. They will be bale to tell you what the issue is. If you get error reports with CODES then supply them with the detailes. Go to the official XBOX site and there should be a list of numbers depending on where you live.