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Microsoft has announced that they will be cutting off server support for the original Xbox console and the original Xbox console games April 15, 2010 . The decision was made with "careful consideration," and good intentions for the XBL community.
The reason for the disconnect is because Microsoft is planning updates to XBL service, and those updates are not compatible with the original Xbox console, or games. Microsoft Live general manager Marc Whitten stated that "as we look down the road, we'll continue to evolve the service with features and experiences that harness the full power of Xbox 360. To reach our aspiration, we need to make changes to the service that are incompatible with our original Xbox v1 games."
You can read Whitten's full statement at the Xbox 360 press site. There aren't very many details on the updates that Microsoft is planning for the XBL community but they are promising to update us soon.
Major Nelson
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