The error code is due to the new dashboard update. The way to get around this error is to download the update on the xbox website and manually install it yourself.
If still no luck, I would suggest you to contact Microsoft, tell them what happens and what error code appears.
Hey the same code that kept coming up for me too. This time, when it asked me to sign in I clicked on 'download a profile' and it just installed a new update. My Xbox then restarted, I was able to sign in on my profile and put in the email that's associated with my live account, followed by my password. I hope this helped!
You can redeem any kind of code no matter what Xbox Live status you have.
It means that you have either entered something wrong or xbox live manufacturers need to take a look into the status code fast because of so many complaints
First you need to make another Xbox live account
Your computer is infected by the xabarbi virus.
It means it cant transfer information from the xbox 360 marketplace
You have to call Microsoft Support about it. It means you have a lock on your account, so they will ask you a bunch of questions, and then you won't get the code anymore.
You pull the disc tray out of your Xbox blow into the hole that has been left and that should fix the status code problem the disk tray just slides back into its original spot so don't be scared to use force
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The Xbox Live status code 8B050008 indicates that the console software needs updating. To do this, go to the "Settings" menu, select "System Settings" and then choose "Network Settings". After choosing the option for wired or wireless networks, the option to perform a software update will appear.
It's an account payment option thing, I don't know how to fix it but if you want to remove your payment option you best call Microsoft.
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