Not sure how to check the Live version on your XBOX.
But when you sign on, it automatically updates to the latest version.
And as far as I can tell, most people being banned with Halo2 have large HD's.
The only way I got around this problem was to update my EEPROM and use an completely stock HD, files and all. I just turn my chip off and install the retail HD. A big pain in the ass, but I get to play HALO2 online, so I aint complaining. I'm just gonna pick me up an ugly-ass Xtender case.

Got no choice.