I managed to log into Xbox Live consistently for the first time in weeks today. It was a little slow to connect but I was able to log into the service and see friends. While I was able to connect it wouldn't log into messenger and it took a while to find any lobbies for
Call of Duty 4. I'm not sure what's going on as we've yet to see any comment from Microsoft but it does look like the service is at least partially back up and running.
If you're having problems with Xbox Live please leave a comment below. I'm interested to see how widespread the problem is.
Update(Chuck) - Major Nelson is
reporting that things are back to normal.