I have an XBOX 360 and Xbox Live. It is not modded...yet. Here is my situation: I want to mod my Xbox and want to play Live. The games that I want to play on Live would be a real game (not a back-up). The games I want to play off-line would be the back-ups. Do I have a chance to get banned from Live if I do not play any back-ups on Xbox Live?
No one knows for sure, but have happened before. Lower chance to get caught than playing backups online, but still risky. It appears no one was banned that used iextreme 1.4 only, but M$ will eventually catch up with it. Chance is, you mod youre console, you probably will get caught eventually.
Don´t stop there, you can gogle it too, youll find a lot of speculation and statistics...
If you need a link to google, or explicit advice on what to type or someone to chew food for ya, ask around and someone may pm you theyre phone number.
yeah, there was an article when the 2nd wave of bans came. There is a way to tell if you have been playing backups the very first time you log on to LIVE.