From the pinned topic......
QUOTE(twistedsymphony @ May 21 2007, 08:52 AM)

Q: I purchased a lot of LIVE Arcade games on my console, but it was stolen/broken/sold. I have since acquired a replacement, but was subsequently banned from live. My arcade games do not work. Help.
A: Arcade titles are tied to your gamertag as well as the console they were originally purchased on. If you have changed consoles, the LIVE servers verify your eligibility to play the game, by your gamertag. Your banned console prevents the connection to LIVE and prevents verifying games purchased. Your only option to play your purchased games is from an unbanned console online, or the original console offline. There is currently no work around.