Not Saving my Armor

The last couple of days I am unable to have a guest sign on to play. It says it cannot connect to XBox Live. We have two users on our system and if we both log in, we initially have to sign in as playing local and then once in the matchmaking area, change it to XBox Live Friends.

Since this started, everytime I log in I get the message about being a new recruit. All of the armor I have purchased is there, but I have to go in and re-equip it all. This includes colors, emblem and service tag. I spoke with XBox and they are saying it is a 343i problem…Anyone else dealt with this?