I had always heard that a simple DVD drive flash is safe for Xbox Live - no banning, can play fine. But I posted an ad on CraigsList asking for someone to flash it and I have a guy that's doing it for me for really cheap but he says there's a chance you might get banned. Is this true? And by banned, is that your account or the system or what? And can it be reversed by flashing the DVD drive back to stock? Thanks :)!
Running modified firmware on a 360 DVD drive and playing on XBOX Live, there is always a chance for a ban. If you do get banned, it will more than likely be the console. Once your XBOX 360 has been banned, your serial is logged at Microsoft and won't ever be able to connect to XBOX Live again.
The firmware creators are always trying to keep one step ahead of Microsoft, but there are no guarantees. There is a lot of effort put into the firmware to keep you safe, but again, no guarantees.
Nobody truly knows how Microsoft decides to bans people. What is known that Microsoft sends a challenge to the drive, and the drive responds with a response to Microsoft. If that response was something Microsoft wasn't expecting (example: hacked firmware gives a different response), that could possibly through a red flag and eventually lead to a ban. Firmware creators go to great measures to make sure proper responses are given back to Microsoft.
run your game iso threw abgx360 before burning and playing on live(it checks a real copy if someone has put it in the database)and still you are not 100% ban hammer proof