Mod chips can be deactived with the press of one button, playing live is no problem even with burned games. Another advantage to chipping it is that you can place a better cooler. The number of people banned from live are only a fraction of those that don't get caught.
Edit: as for your other question, don't have a 360 anymore (rrod X 2 and sold it) and hadn't modded it.The consoles banned with halo were also easily unbanned http://www.theinquirer.net/en/inquirer/news/2007/06/01/live-ban-for-modded-xbox-360-cracked

PSN name: Gazz1979 (feel free to add me, but please put your Vgchartz name in the message!)
Battlefield 2: Gazz1979









