I have a question regarding xbox monitoring of the party. And whether a party is monitored or only when you report it, or not at all?
The Xbox Live parties are not monitored.
That would also lead to a great many problems.
First and foremost, privacy would be disturbed, there were constant connection problems or it would take longer before a party started because an employee would still have to be connected, which brings us to the next problem, you would need extra employees to listen to all of this.