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Originally Posted by ATKCash
No no no... if you have a chip, you can turn the chip off to play XBox Live.
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They are now checking your hard drive too. If you have a hard drive bigger than the standard 8GB (or whatever it is) then you will get banned too, even if you have your mod chip turned off.
There are some external work arounds for this that involve using 2 hard drives, but it's probably easier just to buy two xboxes and keep one stock for Live.