Stefan just heard this from one of the MS testers…apparently some of the software on the demo discs was accidentally built with an old video library. A conflict between the finished hardware and the old library will, under certain conditions, manifest itself as the weirdness reported over the last few days.
For anyone concerned, the final version of Halo uses a more recent library which does not have this problem. I expect other Xbox titles do as well.
It’s still an unfortunate gaffe, as it has generated so much bad publicity in such a short time. But it’s also nice to hear that it’s an easily fixed software thing, rather than a hardware issue as per internet speculation/accusation. I suspect MS will update the demo discs on the Xbox kiosks (which they were planning to do periodically anyway) with a more recent build, and the people with axes to grind will have to complain about something else.
Hopefully this will, once again, address all the of the related problems with the Xbox Kiosks.