Microsoft and Turn 10 might be determined to seek and destroy acts of hatred and discrimination plastered on Xbox Live, but the publisher and developer of Forza 2 couldn't act fast enough to prevent a 1957 Mercedes 300SL, defaced by pro-Nazi symbols and sentiments, from being offered through the game's online auction mode. 360-gamer recently pointed to the unsettling item, criticizing the moderators for their inability to keep this kind of content off of the Xbox Live servers; or at least promptly remove it (apparently the car's been Live for a while).
Whether adolescent mischief or true delusion, a small percentage of user-generated content is always going to incite "discrimination, hate, or violence towards one person or a group." While Microsoft clearly defines the boundaries of condemnable content in its Online User Policy*, the company fails to suggest how it might protect its users from being victimized by such content. Probably because it can't.