I agree with SigmaWoody, this is terrible user experience...
1. The error message IS vague
2. I cannot find an option on live.xbox.com to change the language (for me it is not English)
3. The game, on the other hand, reports the vague error message in English
4. You DO need the online status enabled
5. The game does NOT tell you to restart... (but you need to)
BTW, you cannot turn off (or down) the music until you resolve your online status preferences... ridiculous