I checked the 360 manual and couldn't find anything about this so i hope someone here might...

Is there any way to download a game and play one at the same time? It seems strange that you should have to stare at the download bar while it dowlnads a 1gb game. thanks!

Pretty sure there is nothing you can do except watch the progress bar. Any action you perform will pause the download. You can resume it later, but it seems that you can only download and do nothing else while you are downloading.