When setting up the media extender for 360, the 360 tells me that it has to connect to xbox live for it to finish off the process after entering the 8 number code. I don't wanna get banned but i also want to use the extender. I strongly suspect that I've already been flagged so I don't want to take the risk and want to retain hdd install functionality. Is there a way to set it up without connecting to xbox live, or is it mandatory?

Thanks in advanced