Sources: The Sixth Axis, VG247, Gizmodo
quote: His hardware still works fine, his software also still works fine. The online service is what he is banned from here.
quote: I am the not-so-proud owner of a banned XBOX360 due to flashing the DVD-ROM firmware to boot unsigned code (homebrew.)
quote: Hard Disk firmware custom because you put in your own 120GB disk into a 20GB case and flashed the firmware? Ban.
quote: A ban is identical across the board and there aren't different types of a ban. A console ban is the same thing as an XBOX Live ban, and vice-versa.
quote: You may not be banned right away, but you eventually will be, because as soon as you sign in once, they have that key package on file, and know your modified.
quote: The next time they initiate a ban-wave, you will be banned, even if you haven't signed in since and even if you are running signed firmware at the time of the ban.