hi, saw this thread a few days ago just before i resolved the problem with microsoft, couldn't post at the time as no one authed my profile here
anyway, microsoft WILL refund the points if you talk to them and explain on their live chat
i did this the other day and points were refunded to my account within 5 minutes, just explain that it doesn't work and paste a couple of links to forums where other people are talking about it not working
if you bought on the xbox go direct to microsoft refund
if you bought on the ps3 go direct to sony for a refund
hope this helps