no no no youve got it all mixed up. There are 2 kinds of points. Gamer points and xbox live! marketplace points.
The first are points acquired playing games both on and off line and completing various challenges. These dont serve any purpose but to enlarge your xbox e-penis.
The second are points that you BUY either with a credit card online or in shops. These can then be spent on mini arcade style games, pictures, videos and game addons through the Live marketplace.
Hope this clears things up
