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Bioshock demo on hard difficulty level
From the Xbox 360 Dashboard, head into your Gamer Profile and select the Game Defaults option. Once in there, click on General and change the Difficulty option to "Hard." When you load up the BioShock demo, the previously unreachable Hard difficulty option will now be highlighted. If you accidentally hit the analog stick and move away from the Hard option (thus making it unreachable again), you can hit the B button to back out and give it another shot.
http://www.1up.com/do/newsStory?cId=3161979