The new titles come in a multi-format bundle, but the older ones are single format. For multi-format, try ePub instead.
If you only have PRC, see if it can be read using Windows MobiPocket Reader. It will presumably work, but if you right click on the book's entry in the library view and select Properties -> Summary the last entry is encryption. My guess is that it will say "content encrypted". This means that can be read by any MobiPocket Reader software, on any device, but not by any non-MobiPocket software. If it says "Not encrypted" then something else if wrong.
Another option would be to try to display it with Calibre. If this works, convert to ePub for your 360. If the ebook is content encrypted, Calibre will tell you it has DRM.
The standard MOBI dedrm tools and 3rd party Calibre plugin can strip this DRM. See Apprentice Alf's Blog for info about DRM. Or you could get Torquere Press to re-spin the MOBI, I'm sure they don't intend to use DRM.
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