Here's my working live setup, FYI.
Xbox 1.1, Chameleon, 40Gb HD, X2 4983 bios, Slayer 2.6 setup on C and F, 2 months live trial.
I modded the box long before I tried live, and the bios automatically blocks the live port, so I can't log into live with the chip on. Whenever I try and risk banning, I got the message Live network could not be reached.
Whenever I go to live, I do so by evoX's "boot w.o. chameleon" option. This boots in normal mode, and since my C: drive is absolutely clean except for an evoxdash.xbe, this seems to work fine.
The past few weeks I went in and out of live several times with different games, just for testing. Still not banned. My trial should be due over soon. I'm not sure if M$ makes any difference in full/trial subscriptions, this here is just my testresults I wanted to share with you.
I don't use Live anyway, I'm more of a KAI user (tagname "commanderkeen").
Frag me anytime there, I pretty much suck on Halo 2 hehe ;-)
Cheers