That is correct – up to four player co-op in Campaign mode on Xbox Live or System Link.
We’ve been playing it for quite some time, and bluntly, having some of our greatest ever Halo experiences. We wanted to make sure all our “t”s were crossed and our “i”s dotted before unveiling this important new part of Halo 3’s Campaign mode.
Apart from the horrifying network challenges this new mode presented us, were the various gameplay balance issues it adds to the fray. So we got it all together, polished it, and that’s why we’re revealing it now. As a result, you’re going to want to play co-op as hard as you can stomach it. We’d certainly recommend Legendary, but we’ll be revealing some more ways to make the game more interesting and challenging for multiple players in the very near future.