Server Full when 1/8 players online

Verification builds: 1.2 (build 446687)

Summary:

Can not easily join games over the Internet (using Xbox Live) even though slots are available. The "Server Full" dialogue keeps appearing as you click the server, it typically takes around 5-6 tries or a client restart to get online. Note: nobody else (other than our dummy account) is on the server while trying to connect.

Impact:

Difficulty getting in game.

Repro Steps:

1. Have a game running where Xbox friends can join over the Internet.
2. Try and have another account connect.

Observed Results:

Server Full dialogue keeps reappearing.

Expected Results:

Should load game.

Screenshots/Videos attached: Yes

Notes: