I guess I'd never seen those settings.. hmm..
Per Microsoft:
To configure your child's communications settings for Xbox LIVE:
1. Start from the System area of the Xbox Dashboard or—if you're using your Xbox 360 system for the first time—from the Initial Setup Complete screen. Select Family Settings, Xbox Live Controls and sign in using the password for your Windows Live ID.
2. Select Privacy and Friends, Voice and Text.
3. Choose one of the following settings:
* Select Everyone to allow your child to communicate with anyone on Xbox LIVE using voice and text.
* Select Friends Only to allow your child to communicate only with people on his or her friends list using voice and text. (Be sure to manage your child's friends list using the New Online Friends control.)
* Select Blocked to prevent everyone from communicating with your child. Your child will still receive new friend requests.
I'm not sure how this affects in game chat.. will keep looking.
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