Well I try to get on xbox live today and it logs me on and says I have to agree to a new terms of use to get on and start playing games. So I select the view terms of use and it starts to take me to the page but once it starts to load it kicks me off and says that I am no longer connected. I can't play any games or get onto the marketplace or anything because of this. Any help at all would be much appreciated and if this has happened to anyone else please let me know, thanks.

Well, do you have a wireless router or do you have a wire that connects the computer to your 360 ?
I have the wire, and this problem has never occurred to me, but if you have wireless, you could be just losing connection.
Maybe try doing it at night and in the mornings when Microsoft aren't so busy ?