This is the developers’ description for the Xbox Live indie game in question today: “Septipus: Tentacle Apocalypse is a story based arcade style indie game, taking place inside the lair of Septipus, an effeminate seven legged squid whose quest for a moustache leads him to ransack the nearby town of Follicles.”
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You play as a heroine named Smiley, pumped up on steroids, who sets out to defeat Septipus:
Septipus: Tentacle Apocalypse is available on the Xbox Live Marketplace for 80 Microsoft Points ($1). The game has 27 levels, not including boss stages. You can visit the developers’ website here.