There are hundreds of posts on the Xbox.com forums about it and my friend is personally affected since yesterday when he tried re-downloading his profile.

For about 2 hours today it was listed as being fixed over at Xbox.com's Xbox Live Status page. After that it said "problem fixed, thanks for your patience" and the listing was deleted 10 minutes later. The problem is however not fixed and given that people are probably heading off for easter vacation this could go unresolved for several more days.

This problem seems to be Xbox 360 only.

So PSA: Don't try (re-)downloading your profile until this is 100% fixed!