Are you sure? I mean, you know these people? I have no idea myself, I just know that common wisdom is that using an unlocked console gets you banned. But at the same time I've heard that MS has no way to check, and people play on pirated versions all the time. I've never seen independent verification one way or the other, just talk from 'guys on forums'.
Yes, for certain. There are some guys from an IRC chat room i occasionally frequent who have modded the boxes and have had the actual consoles banned from live. Again, the gamertags are ok but the box itself is banned, using the console ID# I presume. Banning boxes is real and as new modding measures are dreamt up, it seems MS figures out a way of detecting and then banning, wave by wave.
EDIT: Mind you, I dont know where the war between modders and MS stands right now, and if there are undetectable modding procedures at the moment, but I know for certain some methods in the past had been identified. Just based on some of the conversation it seems that those who modded the box are staying clear of Live but I dont get into the details with them.
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