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Of course you can. Create a new account and you should be on the Silver membership which allows you limited benefits(compared to Gold membership) to play on live games.
You can go to the xbox website for more details:
http://www.xbox.com/NR/exeres/F925FE0C-E310-491A-82E0-7A604A353BFB.htm
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I brought an xbox 360 arcade console can you play live on it, I have forgotten what it has said on the box.