Bully has been out for a while (PS2) but it was ported and re-released with a few new missions and stuff for the XBOX 360 and Nintendo Wii sometime earlier this month. The XBOX 360 version is the only one with problems and Rockstar is releasing a patch or something to combat them.
The game is awesome. Seriously, give it a chance - one of the most interesting and unique experiences on the PS2... or Wii... or 360.