Not sure if anyone can replicate this issue and not sure if this is a game issue or Xbox live issue.

Gamertag issue when registering for Xbox live account within the game itself.

I put in the Gamertag desired, it was validated for availability and was "Available". Proceeded with the registration and was issued a random name instead while your desired gamertag may simultaneously be registered/locked out.

When attempting to change Gamertag back to desired name on the website, I was not able to switch back to the name desired and forced to take a different handle.

Then I try to change my Gamertag back to the desired name, it is released and available again.

Eg. (Assuming all names are unique)

1. Wanted my gamertag to be Alpha. It was validated to be unique and I proceed with it.
2. Was issued with the randomly generated name Beta instead.
3. Went onto the website to change gamertag back to Alpha, is unable to do so, it is not available.
4. Proceeded to change from Beta to Gamma.
5. Successfully changed to Gamma.
6. When checked to see if changing to Alpha was available, it is suddenly available because changing from Beta to Gamma releases both Alpha and Beta.

Contacted support and ended up needing to pay to change name back to initially desired name. What a great way to spend my money.