Microsoft has promised to refund Xbox Live users in America who have lost money trying to download movies and TV shows from its new Video Marketplace.

The service, which launched earlier in the week, allows users to download TV shows and movies via their Xbox 360 console.

However due to an unexpected high demand for the new service Microsoft couldn't cope with the demand.

"These technical issues have resulted in a very unpleasant experience for our members, including extremely slow downloads or not receiving the content they purchased", said Microsoft's Larry Hryb on his blog.

According to Hryb Microsoft has "made progress over the past 24–hours, and the team is dedicated to fixing the issues and continues to work as fast as they can around the clock to get the service running as seamlessly as you have come to expect".

That still hasn't stopped the company's Xbox forums filling up with complaints and concerns over downloads that are either taking an exceptionally long time or failing altogether.

Some gamers are reporting that they are receiving different programmes from the ones they have paid for, while others have complained downloads are taking hours to arrive.

One user, called Lollard, said on the forum:

"The next question is what to do. I am at 28% on an HD movie download after 14 hours. I really do not think I should let this thing go another 38 hours or so to get this movie."

Microsoft launched the service last week allowing users to download TV shows including the CSI stable, Star Trek and South Park, while movies include more Star Trek, Harrison Ford classic Patriot Games, and Stanley Kubrick's The Shining. Water fans will be able to enjoy both the Perfect Storm and Poseidon.

Rather than paying cash for the downloads, Microsoft has opted to charge Points for the downloads which can be purchased via Xbox Live. Points cost $20 for 1600 Microsoft Points card or $12.50 for 1000 Microsoft Points making a High Definition move around $6 (£3).

Microsoft has not announced whether or not the service will be coming to the UK.