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I had this exact same problem. It appears to be a service running in the background that stops running. For some reason I can get signed into ALL my other Xbox Live Games for Windows games, but not Viva Pinata.
As I understand it, all you need to do is restart the service called Cryptographic Services.
To do that, go to the Start Menu, and then the Run or Search Field. Type msconfig in that box and press enter. Once msconfig opens up, click on the Services tab. Once that tab opens up, find the Cryptopgraphic Services service and start or restart it. Now try Viva Pinata again. It should work like a champ!
have you tried deleting the profile of that specific gamertag? try it first then try recovering it.. if the issue is still there, try recovering the gamertag on a different console, if it works there, then recover the gamertag on your own console again then the issue should be okay.. hope this helps! :)