consumerist.com:
Teresa says that she was harassed by other players and later suspended from XBOX Live because she identified herself as a lesbian in her profile. When she appealed to Microsoft, she says they told her that other gamers found her sexual orientation "offensive."
"... my account was suspended because I had said in my profile that I was a lesbian. I was harassed by several players, 'chased' to different maps/games to get away from their harassment. They followed me into the games and told all the other players to turn me in because they didn't want to see that crap or their kids to see that crap.
As if xbox live is really appropriate for kids anyways! My account was suspended and xbox live did nothing to solve this, but instead said others found it offensive."
Gaming: Identifying Yourself As A Lesbian Gets You Banned On XBOX Live
Lol, Microsoft. i got nothing more to say really. might be a misunderstanding on Microsofts side, i do hope.