Game chat happening in my party chat

You may have been in game chat while you where in an Xbox Live Party. Check the features in your party settings to make sure you are in Xbox Live Party chat and not in game chat.

What happens if you switch to game chat and then back to party chat?

In my case, this happens whether or not I am in party chat. I mostly notice it while I am not in party chat.

Just last night I would invite a friend to party chat only to find that for some reason I was in game chat and when I went to select party chat, nothing happened. Furthermore, when this occurred, the chat icon (the hollow circle or "doughnut") wasn't visible
next to my friend. When he tried inviting me to another party that he started, the same thing happened. This has happened before and completely shuts down the social aspect of XBL.

Hey guys, sorry bumping this thread as I still have this problem. Just to reiterate, from my online friends' perspective, it shows I am in party chat and when they join, they think I am being rude by not responding, but what is actually happening is, as
far as I am concerned, I am not in party chat at all.

This scenario happened lastnight, I was in party chat with a group of others, (I was invited), somebody joined the party chat via my name and was put in a separate party chat with just me and them in. Unfortunately for them, I was in the party chat with
about 6 others, but from his perspective, he was in a party chat with just me and him.

When he checked the party chat that I was currently in, it didn't show me in there at all, even though I was happily chatting away with my group of friends.

This is well peculiar and starting to get annoying - anyone have any suggestions.