You're both somewhat correct.
Microsoft implemented backups of secdata.bin within the NAND image itself. Once you are banned (or flagged for a ban), it marks one of the secdata.bin's but not the others. This hack cleans a secdata.bin and restores it, effectively clearing your flag. Meaning you do
not need an original backup of your NAND**.
After dumping the NAND, you find and clean a secdata.bin, restore it, then flash back to the console. There's already
a tutorial written here on Xbox-Scene so I will refrain from duplicating information.
That thread is a few months old, so I would read through it all to see if there are links to new tools which can help you in this process. I heard of a program that will locate a clean secdata.bin for you and automate almost the entire process, but I cannot remember the name or author. Sorry.
QUOTE(boflc @ Dec 8 2010, 02:03 PM)

he'll provide affirmation next time he sees this thread, i'm certain.

**After a while, the backup secdata.bin can be lost but this is after heavy use of the console; usually many months of constantly playing new games.
Edit: Found
a news item on X-S that might be handy. Take a look.
This post has been edited by Ketchup_Bomb: Dec 9 2010, 02:03 AM