Xbox Live update available for download

Microsoft has a new XBL update ready to be downloaded, it doesn't seem to come without some problems though.

You will be asked to download the mandatory update when you try to access XBL.

The update gives you the option to use PayPal for microtransactions.

In addition to that, it added support for a new Microsoft DVD format.
This however seems to cause some trouble with playing discs.

According to Microsoft the recent update is causing problems for  "a very small numbers of Xbox 360 owners" as they are said to be hindered from "playing retail discs".

Xbox Live user Avery Penn received a mail from Microsoft this Tuesday.
Microsoft can track the Xbox 360's hit by this problem, and is offering them a new Xbox 360 S with a 250 gigabyte harddisc and a year of XBL gold.

The new disc format-update is supposed to prepare the Xbox 360 for a new disc format which has an extra gigabyte of space.

Microsoft Customer Support has confirmed this.