To determine whether your child can play Xbox 360® games with other players on Xbox LIVE®:
Start from the System area of the Xbox Dashboard or—if you're using the Xbox 360 system for the first time—from the Initial Setup Complete screen. Select Family Settings, Xbox LIVE Controls and sign in using your Windows Live ID.
Note
When you sign in, the system will load your child's profile (or, if there is more than one child profile, you'll be able to choose from all available child profiles). The password you will need to provide is for your own Windows Live ID, not your child's.
Select Online Gameplay, Xbox 360 Online Games.
Choose one of the following settings:
Select Allowed to allow your child to play Xbox 360 games with others on Xbox LIVE.
Select Blocked to block your child from playing Xbox 360 games with others on Xbox LIVE.