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Some points DO expire - as many UK people that preordered GTAIV found out.
If you buy a MS points card from a shop those will never expire.
However if you are given points, in the case of GTAIV, given away as a bonus for pre-ordering it - these can expire depending on what agreement the company giving them away made with MS. For people that got them from GAME/Gamestation and got 500MS points - if they hadn't used them within 2 months (actually spent them, rather than just put on your account) then the points expired and were lost with no way to get them back.
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