QUOTE(djblu3 @ Nov 8 2009, 09:33 AM)

I have a flashed 360 and I currently don't use XBL and I don't know if I ever will. I don't even have a subscription to XBL.
I want to connect my 360 to my home networking to do some file transfers of media, home brews and what not. I'm just wondering if the 360 sends data to Microsoft right when you connect the Ethernet cable or just when connected to XBL.
Reason why I ask is because I might use XBL in the future just not at the moment and I would hate for the system to be banned for just being on my network.
You'll be fine. If you want to prevent access to Live you can do so through the parental controls on the xbox.