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[shadowfall]

If you read the tutorial pinned in the tutorial thread it will explain it to you.  Xbox save files need to be re signed to allow the game to read them.  The game is written to only accept xbox signed saves.  Check out the tut, it should help.  And yes, you should at least soft mod your xbox, that way you can ftp files back and forth to your xbox, rather than having to use an action replay.  It will also allow you to edit your default.xbe to let you use unsigned save files, this is also in tutorial thread.