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So if I recover my profile on my friends xbox we then both be able to play games like GoW and Halo 2 at the same time on his box? If so, that's cool. We just assumed my account would cancel out his. Wouldn't that be the easiest way to get this technique to work if you could really trust the...

Does account recovery knock out all other XBL accounts on a system? If I were to recover my friends account on my system would my account go away or would they both be in the found profile list?