you will not get banned on xbox live if you follow these conditions:
1) you disable the chip when going online
2) you must have the original copy of the game
3) you can't be running the game from your hard drive (in reference to #2)
4) apparently, as long as you upgraded the HD BEFORE you signed up for xbox live, you're safe (as per :
http://www.teamxecuter.com/index.php?name=News&file=article&sid=128&mode=&order=0&thold=0)
5) if for some reason you do get banned, there is no way to unban yourself, other than to replace the EEPROM (replacing a certain chip on the MB), which i dont think is possible on 1.6's
6) if you boot the retail bios (disable the chip), and the HD is unlocked, then you will recieve an error code 5, and it wont boot. in order to run your xbox with the chip disabled, you must lock your hard drive
7) WHENEVER YOU DECIDE TO LOCK YOUR HARD DRIVE, MAKE SURE YOU HAVE A BACKUP COPY OF THE EEPROM HD PASSWORD, FOR IF YOU DONT, AND YOUR XBOX SCREWS UP, YOUR HARD DRIVE WILL BE A LARGE PAPERWEIGHT!!
feel free to PM me for any other questions & payment info :wink:
-sandman1687
EDIT: jesus, i WAS next to reply, oh well.