i have this exact same problem in every way, and i called 1-800-4MY-XBOX. they told me to delete the cache, delete all Halo 3 content from my console, and it still did not work. what was weird though, is campaign worked perfectly at my friend's house on his console, and worked when I took out the hard drive on my console, so Xbox Support told me it was a problem in my hard drive, so I must try the game with a different hard drive on my console, and if that works, it confirms their answer, and I must buy a new hard drive.
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