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Hello, I also experience this after getting a replacement Xbox.
The thing I noticed was that while they allowed me to transfer licensing to all my games with just simply hitting "download again" (nothing downloads though) so those games work offline... this patch just will not work offline.
It's fine if you have internet (which I do) but being signed on just to watch video is annoying.
I don't really have another drive or a transfer cable or a memory card.. or the desire to really go through that trouble to get it to work.
Any suggestions?
I did try :3. Deleted the Optional Media Update under Memory->Hard Drive->System Items on the System blade
In fact, it made me download it again when I got the NXE too.. but still no luck.
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