QUOTE(scimitar116 @ Dec 11 2004, 03:17 AM)
3) yes, you can play this as a backup (from a cd, not a dvd) on LIVE without being banned.
Hrmm? Is that so? I mean, I get the part about being able to play this off a CD-R on an unmodded Xbox, but being able to play it on Live with a modded box, without getting banned? Seems too good to be true.

When you log into XBL, doesn't it check your box for modifications and if it senses anything strange, you get banned on next login? At least that's the way I've always understood it and why I'm always sure to turn the modchip off before playing a retail game on XBL. Correct me if I'm wrong please. Are you saying the "check" is simply what media the .xbe is running off of, and if it's not "authorized" you get flagged? And in the case of this game, any old CD-R can be "authorized?"
Regarding XBOX Arcade CD specifically...
A CD-R backup of this can indeed to used to play on Live. This is the
title to my knowledge, that allows this (ignoring the tricky to burn SWBF Demo DVD-Video). And, yes, all the old XBL rules still apply, your machine must be in a retail state in order to not get banned.