I'm doing some research before actually buying and installing something.
I understand that there are two ways to play your backups on the xbox360.
Being flashing your drive, or installing a mod chip.
Are both options EASILY upgradable and thus future 'proof'?
My main concern will be playing on Xbox Live. I hear that you can do it, but that there's always the risk of getting banned?
Modchips are obviously more expensive, but are they any 'better' then flashing the drive?
The above is truly the only safe way not to get banned.
But of the two options you listed flashing seems to be the way most people would go. It is easier to do, will cost you less if anything, and they keep up to date with new trends and release newer firmware. there is only one chip i know about so far that you can update. So usually with a chip what you buy is all you get.
I've been waiting on feedback in regards of the NME2 which according to the manufacturer is fully upgradable. I guess this could be just marketing, thus we need to be cautious.That's why I'd like to hear reviews/feedback on the chip but no feedback so far. FEEDBACK PLEASE!
Also, it seems that the NME 2 presents less risk of being banned on live, because NME will detect that you're playing a backup and will disable your network connection.
The third point, is that for terrestrials like myself who knows nothing about soldering a chip such as the NME2, it is very complicated and outrageously expensive to find someone who'll do the job for you. There are some guys out there who will service and install the NME2 for about 150 USD, but you still have to pay for shipping which adds up and additional 10 at least. Yet, god only knows if your 360 will ever make it back home safe.
Taking that into account, it might be cheaper to buy a 2nd XBOX 360 unit and flash it. Then you'll have one 360 to play live and one to play backups and zero risk of being banned.