Army of Two 40th day Bug Solution

Ok after a few tries, I have found a solution. Here's my step by step solution.

1. First copy your save files (all of them - excluding the game data files) to some removable media. Such as a USB stick, MU, or old HDD. I personally used my old X360 HDD.
2. Now that you have safely created a backup of your save files, go to the System tab, select Memory, then select your console HDD, select Device Options, and then select Cache Clear. This last part will delete your System's Memory Cache. When asked if you're sure you want to perform this system maintenance option, select yes.
3. Now load your copy of Army of Two 40th Day. The game should prompt you to update the game. Do so. Once updated the game should take you to the main menu. You can now play the game and all new data should be safe from the bug. Play for a while, earn some cash, upgrade and customize some weapons, find a check point and then exit to the main menu. Quit the game, and restart your console. Play the game again. When you load up your recent saved game you should still have all your weapons, upgrades, and customizations. You're done.

I should have tried this solution first, but I had forgotten about the Cache Clear option. Thank you for the info montaloon and Badbabaloo.

Please note: The bug will erase all statistical data from the last checkpoint loaded, so all campaign progress is deleted, and all achievements that require a certain number of kills/type of kills/actions will be reset to zero. If you've already earned an achievement you're fine, but if you were in the process of doing so, you're out of luck. And for the game completion achievements, you may want to restart from the beginning once you've applied this solution, as none of the previously played chapters will count toward campaign completion. BTW, apparently the bug only occurs to individuals who have a lot of games on their HDD and have not performed a Cache Clear  since system was initially purchased. It seems sometimes there just isn't enough memory to complete the Update in AoT40th and this causes the bug.

Important UPDATE!!!!

For all Army of Two and Army of Two 40th Day owners: 

EA will be shutting down all Army of Two and Army of Two 40th Day servers on August 11, 2011. As well as servers for many other older games. Please visit this site for a list of other games. Offline game play will not be affected, but online co-op and multiplayer will no longer be available.