A couple thousand people including myself not recover our XBL accounts to our Xbox after using them while out on vacation. Over the past few days Microsoft has provided poor support and lack of updates on the situation. I think I may have found a way to migrate your account.
- Select Create new XBL account
- Enter your current gamertag
- It should recognize that your gamertag has been in use and offer you to recover it
- Go through the recovery process
- If it did not work repeat steps 1-4
- Walla your account should be working fine
It worked for me on the 2nd try.