Xbox Live connectivity issues fixed, services return
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Update:Xbox Live services are back up. According to Microsoft "networking changes" made by the team "resulted in a connectivity error for all users in accessing Xbox Live and Xbox.com." The changes were reversed and all systems are restored.
Original story: Some folks are reporting that Xbox Live is down at present, and Microsoft has confirmed users may experience difficulties with connectivity. It said it is aware of an issue with signing in and connecting to XBL and are "hard at work to get you back online as soon as possible." You can check the status of the service through here, and you will also be made aware through the link when it is working again.