The Walking Dead on Xbox 360 is nearly unplayable. Telltale forum dwellers note that the game has freezing and stuttering issues that render the game very difficult to play. This makes quick-time events particularly troublesome, with one user noting that button prompts appeared much too late, making the event impossible to complete.
Beyond these performance issues, several users report that they are unable to start Episode 2 after completing the first episode. Upon selecting the second episode, the game simply restarts Episode 1, according to the forums. An Xbox Live title update was released to fix this, though some users are reporting that it persists even after the update is installed.
As for the freezing issue, Telltale is aware of the problem, and states that it is apparently affecting users with the 4GB Xbox 360 Slim model. That said, there are users on the forum reporting the issues on other models, and Joystiq tipster Jared notes that it is also affecting his Gears of War 3 special edition console. Telltale is looking into the problem, and hopes to "provide more information soon." We've also contacted Telltale for comment, and will update this post as soon as we hear anything.