Well their "specialist" finally contacted me. He said the store I bought my console from is not an "authorized retailer". Which is not true because it is a large online retailer. He told me that it is pretty much my problem and Microsoft will not do anything.
So I now have a $200 paperweight that I haven't been able to play for weeks. I guess I will have to buy a new console when i have extra money. I am not sure what will happen to this one. I guess it can never be played again, even though it worked fine before but now has the stupid error message.
I have been a loyal customer of Microsoft for over ten years, but I will never buy a product from Microsoft again after how I was treated. They do not want to own up to their error, and instead blamed the retailer and put it off on me.
I strongly suggest not buying from Microsoft in the future and be very cautious if you do. I would make sure to buy from the official Microsoft store just in case your console or hardware has an problems so they cannot say you bought from an "unauthorized retailer" and tell you it is your problem.