I've been doing some searching on this one and haven't found any else mentioning this. I've been wandering if you can still sign into xbox live for the movies and communication as long as you don't play a game. Mine has a dvd drive but no key so you can only watch movies with it. I haven't been brave enough to just try because I still have hope for it being fixable.Edit
Funny, I've been reading through old posts off and on all day and just stumbled across the answer in a post on the first page.Link to post
I guess I'm going to give it a shot a little bit later unless somebody know better.