When a Xbox console is modded with Ixtreme firmware onto the DVD drive or has a jtag, when you connect your console to Xbox live you will be banned. When you first signed up to Xbox live, if you read the small print, it says that you can't modify the Xbox 360 console and they have the authorization to banned your console from their Xbox live service, so Microsoft already warned you what can happen if you mod your console. Once a Xbox 360 console is banned it can be removed, but only if you have the blade style dashboard with a jtag modification performed on the Xbox's motherboard, before you got banned. If your Xbox doesn't have a jtag hack, then your console is banned forever! The thing is that unbanning a Xbox 360 console can be complex because you have to extract the CPU key from your console and replace it with unbanned key and it takes lots of time and effort.
However, if your Xbox live account is banned, all you have to do is create another Xbox live account. This means you will have to buy Xbox live gold again, but at least your console is not banned!!
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