Sometimes Xbox.com (or Passport - err - whatever they want to call it this week) may have an issue. I'm still working on getting XBF to handle all of these in a better model; though it's difficult to test everything accordingly.
If you encounter such issues, make sure that you can indeed use your browser to visit http://www.xbox.com and successfully sign in. If you can and are still having problems, please send me what URL you end up (at Xbox.com) and, if applicable, what language / version of Windows you are using.