Hmmmm . . . you're digital games don't work probably because your licenses are not in order.
Is this the console that you originally used to purchase the games? If not, you need to be ONLINE in order to play them. To play them OFFLINE -- or when you're banned, the licenses would need to be transferred from your past console.
Can't do this now since you're banned. Most of my digital content is still playable as I had done a license transfer within the past few months. This being my 3rd Xbox with this account.
Most of the games were purchased on my other 360, that I still have, fortunately, but I transferred the licenses over to the new (banned) one over a month ago. Something is not kosher with this, as MS is the one stealing legitimately purchased games and "money" from me.
EDIT: I'll take the ban and whatnot. My fiance fucked up and it's my console, so whatever. But being denied access to what I actually paid for? that.
Bored? Too much money than you know what to do with? Why not check out my Amazon Storefront? If you see anything you want, send me a PM! Make an offer, either monetary or trade! Over 2000 items, and more added daily!