Idk about free, but I know there was a NTer who would sell XBL pts at a huge discount..... I forget who tho...................
bing.com search reward system where you get points for the amount of searches you do. so those points can be redeem in xbl points as well as amazon gift cards.
but... it takes days to rack up points
made 20 bucks funded for my education
Enroll in the Xbox LIVE Rewards program.
You'll get free points for doing whatever the criteria is for that month.
For example: Earlier this year, I got 800 MS Points for spending some hours on apps like UFC, Netflix, Last.fm, etc.
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