You can download most, if not all items with a silver membership. The only difference is that some items arn't available to silver members on day one. Usually a weeks wait if any. I don't know whether GTA:LAD is available to silver members yet though, I imagine it will be, they will want as many sales as possible, pointless restricting it.
I got my 360 at a second hand shop and I got the 3 red lights after about 6 month. Had no problem getting it repaired. I'd say definatly go for it, your saving yourself alot of money.
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