Hey guys thought I'd post up my recent experience with live bannings...
1.0 Xbox/X2Lite/200gb HD
I hadn't played Xbox Live for a month or so until Halo2 came out, I signed on sometime that week with RAINBOW 6 3 ( I didn't have Halo 2 yet ). Played that night fine and went to bed....woke up with the dreaded modded xbox error.
From what I've gathered so far this is because I upgraded my HD sometime after a certain Xbox Live update (120gb to 200gb).
What I did to get back on and not be banned (for 3 days at least) was to take a HD and EEPROM (note: from the SAME 1.0 xbox). I formatted the HD with Slayers 2.6 to restore it to original format, then flashed eeprom and locked. I have to say here that this Xbox (the one I took the eeprom/stock HD from) WAS signed onto Live around when counterstrike came out.
So far I've been on Live almost 3 days and I'm not banned, keeping my fingers crossed because I'm only 3 months into the annual subscription and reallllly don't wanna buy another Xbox!!!!
I'll also note that I actually CANCELLED this gamertag, but reinstated it when I realized that I was not on the MONTHLY subscription, but the annual.