I backed up MotoGP 2 onto my modded Xbox. When the game loaded to the main screen, it asked which profile should it load. Now, just as a caution, I unplugged my network cable from the back of my Xbox. I selected my Live account gamertag, shanafan, and it tried to connect to Live! Wonderfully, since I unplugged the cable, I got an error saying it was unable to connect.
Now, I wish MotoGP 2 would have asked if I wanted to connect to Live, but oh well. You can have either an online name and/or an offline name. So, for you modded Xbox users using Live, make sure you create an offline name at the main screen.
So, back to the cable issue. I have read, and read, and read again, that even if the cable is unplugged, and you try to connect to Live, it will write to the EEPROM that an attempt was made with the modchip to connect to Live, and will ban you next time you connect to Live. I have stood by my word that this information is false, and so have others. It has been 1 day since I tried to connect to Live with the modchip on (cable unplugged), and I have not been banned. We'll see what the next few days bring, but, I still stand by my word:
Accessing Live with the cable unplugged, modchip on, will NOT result in a ban.