A common complaint about the Xbox 360 dashboard is the lack of the multi-person chats that were available on the original Xbox. Microsoft says it comes down to how the available bandwidth is allocated. Despite assurances that the Xbox team is "listening", nothing much has changed since the launch of the console. This has led to pretty sad how-to articles like this one, which describes how to use Xbox Live to provide chat capability for Super Smash Bros. Brawl - with the caveat that you actually need a game like Halo 3 to establish a multi-person chat environment.
...