Does anyone know if it is possible to change your gamer tag without paying 800 points.

I would imagine the answer is no.

Alright iv heard that if you get reported 3 times your live account has to change its name has anyone experienced this?

the only way I've ever heard is to pay the 800points.

I thought it was 1000 ms points but if you want to change your name that bad just pay the $7 or start a whole new gamertag with a new email.

I remember the days when it use to be free, just phone them up and social engineer your way about how bad your name is and they would change it. (this worked in 2002-2004)

Or

Get everyone in your "friends list" to report your name and it should be changed for free, it still works i see other people doing it online, its not fair but it still works.

I never tried either of these and i changed my name just recently for the first time, glad the process was painless.