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when trying to play halo 3 online i click matchmaking and a flashing message pops up saying "you have to have permission to play live on this game" or something along those lines. This has never happened to me before and im not sure what to do.Any help will be appreciated.
You need an xbox live gold account first of all and also offtopic Halo 3 is only for the xbox 360(s) (xbox 360: arcade, Xbox 360: pro, and xbox 360: elite)
go to dashboard and go over from my xbox over to system settings.
then you go to family settings and/or xbox live settings. and change everything to your demands.. for example to play M games to watch R movies and stuff. good luck.