A woman was banned from Xbox Live because she identified herself in her profile as a lesbian.
I guess it's a good thing there's nothing in my profile about being transgendered. A few weeks ago, they banned a gentleman whose surname is "Gaywood". They said his name was offensive. His name, for frak's sake! All the time, I run across players with racial slurs in their gamertags, or else the tags are built from euphemisms for genitalia. I file complaints with Microsoft whenever I see these, but the players always come back. Sounds like a double standard to me.