M$ one step to far

it takes ages for that page to load ... come back to you if it's loaded ;)

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Loaded ... dang that took some time

M$ is denying the lot ... it puzzels them on how it was even possible to do so in the first place.
Guess they're feeling the heat comming to them.

"... the terms of use of the Xbox Live that no gamer is allowed to use the text or comments that anyhow indicates the sexual orientation ... the profiles that do have tags on sexual orientation are directed to make the desired changes in the language, and stay suspended until they do so."

Based solely on the article you posted, it looks like a clear case of a 'Terms of Service' violation.

"Banning someone for his or her sexual orientation is highly offensive. ... How someone's sexual orientation can play a role in gaming is puzzling."

What's equally puzzling is why someone would feel the need to mention their sexual preferences, regardless of what it is, on a gaming profile. And this isn't a case of 'Banning someone for his or her sexual orientation'; it's suspending her for expressing it. It's like going into Wal-mart wearing a T-shirt that says, "I'm into bondage!", and having the manager ask you to leave until you change clothes. The First Amendment doesn't apply to a private web site. I'm not an Xbox user, but I suspect this is one of a long list of things you aren't allowed to include in a profile without getting suspended or dropped.

I notice that in none of the links off the article does MS say it found anything offensive. Some of those articles make unsupported speculation about their motives based on the actions of other Xbox users, but offer no hard evidence to back up their suppositions. TOS violation, pure and simple; many sites (including this one) bounces users for that all the time.