Modded Xboxes get the boot from Xbox Live
Early reports suggest those that bought Halo 2 and attempt to log into Xbox live are getting the boot, and their live account cancelled, if their console has been modded in any way. This includes mod chips and/or bigger drives.
While it's too early to tell if a workaround will be found I am sure someone (maybe even you) will figure a way around M$'s new "security feature."

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