So one of the most important things I have learned about Xbox live is how to bring your Xbox live membership to a friend's console in order to each be signed in when playing on the same xbox.
It is actually very simple and makes playing games such as Halo more fun then playing from each others houses. In the case of halo 3 you are then able to play ranked matches together instead of having to sign in as a guest. This way both people can use a microphone also.
First log out of your xbox live account from the dashboard.
Then scroll to the right under you see account recovery. Go through the steps and then it will bring your friends account to your xbox. Then sign them out and log in to your account. Start the game, Halo 3 in my case, and log in to your account. Then when your friend goes to log in they will be able to pick their profile. Enjoy!
Note: When your friend goes back to their house they will have to recovery the account back to their xbox. It doesn't take very long and is worth it!
I have heard you can put your info on a flash drive and take it to a friend's house so you don't have to recover but I have not tried it myself.
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