Xbox Live Update breaks downloadable kiosk demo

I had downloaded the xbox 360 kiosk demo DVD that has been floating around the net, and it worked perfectly.

 
However, Microsoft forced an update that killed this disk..  You HAVE to download the update or you won’t be allowed on Xbox Live anymore.  Once you download, the kiosk demo disk no longer works.
 
On top of that… one of the levels of Condemned is no longer playable.  There are missing textures all over the place in the abondoned high school level, so you can’t tell where you’re going.  It’s like walking in pitch black.  Not sure if this is a result of the live updates, but all signs point to yes.  I’ve also noticed some “jaggies” in Perfect Dark Zero that I didn’t notice before.  I believe the Xbox Live updates are dumbing down the graphics features to prevent more units being diagnosed as “defective”.
 
If Microsoft is going to do damage control, they better make sure they don’t break things in the process.
Alan is a web architect, stand-up comedian, and your friendly neighborhood Grammar Nazi. You can stalk him on the Interwebs via Google+, Facebook and follow his ass on Twitter @ocmodshop.