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Does the data migration kit stop the annoyance of having to redownload all my arcade games and map packs?

I've transferred stuff by USB but I have to be online to use it.

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Yes, it does. The full instructions can be found at http://www.xbox.com/transfer for using the cable.

After transferring the content, you will also want to transfer the licenses, which can be done at http://www.xbox.com/drm. This will also fix your mentioned problem of having to be online.

Note: you can only do the license transfer once every 121 days.

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Ive done the license transfer, but the game in question still says "Arcade trial" until i sign into XBL. So, if I have the kit.. this wont happen/ –  RIch Nov 12 '11 at 16:54
    
@Rich Hrm.... no. The cable and transfer is just for moving files from one to another, mainly for things like save games and downloads. Your USB move is doing the same thing. The license transfer should do the trick. Which game is having a problem? –  Doozer Blake Nov 12 '11 at 16:58
    
I transferred 3 or 4 games (Doom, Keflings, Trials & Dead Risisng) then did the license transfer. Now these games show up as trials when I'm offline, then convert to full games when I'm on XBL. Ill try transfering one of my new games over and see what happens. Seems this is a popular problem on the internet.... –  RIch Nov 12 '11 at 17:00
    
@Rich I assume you mean all of this is occurring on the new console that you transferred it over to, correct? –  Doozer Blake Nov 12 '11 at 17:05
    
Yes correct. Double checked that the console ID is correct for the licences too. Tried to tranfer over a new game (splosion man) and it does the same thing. I really dont want to have to download all my games + dlc + map packs. Totals over 100GB :( –  RIch Nov 12 '11 at 17:11
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