Yes. Best online you can get for a console, but it's $50 a year. Not much for what you get, but the "free" thing is a big sell for a lot of people. But MS runs a tighter ship than Sony and it actually works unlike Nintendo's online (which hopefully will be made right by the time Super Smash Bros comes out, but that's getting off topic).
The themes and gamerpics cost money, and aren't worth it so I'd pass on those. Use your points for downloadable content like Oblivion's Shivering Isles expansion or good XBLA games like the upcoming Bomberman Live. You get MS points with a debit or credit card -- but you can also buy pre-paid cards in the store. You can get all this without paying for an XBL account, though. The "gold" (read: paying) account gets you the best online multiplayer in the business (clutch for adding retail value to your games) and early access to a lot of content.
Highly recommended. Definitely rounds out the Xbox 360 experience. $50 a year. If you don't like it, don't sign up for another year. Don't pay by month, it's more expensive. You'll love it.
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