downloading game from xbox live onto hard drive then transfer to the console, will that work?

If the 250gb console is one of the older design consoles, not the newer X360S, why not just swap the hard drives instead of the whole console?

As for the saved data, the transfer cable will NOT work for a couple of reasons:

• The transfer cable will only transfer from the smaller hard drive to the larger hard drive, not the reverse. You can not transfer data from a 250Gb HDD to a 60Gb HDD
  
• Once you use the transfer cable, it may overwrite the data of the hard drive that the data is being written to.
  
  

What you could do is move the stuff from the 60Gb HDD onto a USB memory, then from the USB onto the 250Gb HDD (Remember to move the gamertag BEFORE the content). Then move the stuff from the 250Gb HDD onto the 60Gb HDD (again, gamertag
first, then content).

If you end up swapping the entire console, you will both need to transfer the DRM content license. If you only swap hard drives, you may or may not need to transfer the DRM license. I'm not entirely sure, whether it will or not you will need to. You will
need if none of your downloaded content will work http://support.xbox.com/en-us/xbox-live/troubleshoot/play-xbox-live-content

Hello, i dont think there is anyway to download and then transfer via pc,

However it will be possible to download the update from a friends console using your profile or hard drive and then transfering it via USB, as the update is a marketplace download.

(just note that if you use a external hard drive and download it onto this from a friends xbox obviously you wont need to transfer via usb)

Yup.

Just make sure you use your account to redeem and download the game onto your external HD.

Then put the HD in your console and you're set.

If only the console was banned you can recover your downloaded content onto another Xbox. You can physically move your hard drive onto a new console or re-download from your download history. You will need to preform a license transfer as well.

So it seems the trouble is that you downloaded the game onto your friends Xbox Hard drive and then attempted to copy the game itself to a pen drive. You later tried to get the pen drive to allow you to play on your Xbox without Live and this ended up showing
as a trial most likely because the game was there but the license wasn't. If you don't have Xbox Live then you'll most likely need a transfer kit but that's assuming your friend will let you transfer the license from his hard drive to yours.

Just out of curiosity, was the game download file saved originally to your pen drive or his Hard drive?