Microsoft has made it official. Like with a CC license, content from MS games can be used legally in your re-mixes. Specifically intended to support the machinima community, this should open up some interesting work.

http://www.xbox.com/en-US/community/developer/rules.htm

subpixel wrote on Oct 8, '07
The first item under 'Are there restrictions?' -- You can’t reverse engineer our games to access the assets or otherwise do things that the games don’t normally permit in order to create your Items.

And so... this is not perhaps not as useful as it sounds.
lucyvoloi wrote on Nov 28, '07
well spotted subpixel
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