Josh Moore lives in the very small town of Fort Gay, WV. He signed up to play on the Xbox Live network and entered his hometown as part of his profile.
"But was subsequently accused of violating Microsoft's LIVE Code of Conduct. Among other things, the code stipulates that you shouldn't "create a gamertag, profile content, or in-game content that other users may be offended by, this includes comments that look, sound like, stand for, hint at, abbreviate, or insinuate any of the following: profane words/phrases, topics or content of a sexual nature, hate speech (including but not limited to racial, ethnic, or religious slurs), illegal drugs/controlled substances, or illegal activities."
Apparently someone spied Moore's city name, was offended (or assumed Moore was trying to offend), and reported it to Microsoft."
But this stinks in a couple of ways. First, the idea that "gay" is an offensive word. And second that Microsoft wouldn't take 5 seconds (fewer if they use Google Instant!) to check if the town was real.