If you want to play on xbox live with a big hard drive and not get banned this is what you need to do.
1st. Use a slayer disk to make you Xbox hard drive stock.
2nd. Open xtools and load whatever bios you use (ex: X2 4981) then go to the section "Boot Partitions And Executables" make the 1st boot look for: F:\evoxdash.xbe.
3rd. Flash you Modchip with the new bios.
4th. Put your dashboard in the root of F: drive with the .ini, like you would on C: drive, then put all your games, apps, emulators and anything that is not stock to the xbox hard drive on the F: drive.
5th. Lock you big hard drive with Config Magic.
6th. Now turn off your modchip, load your xbox live, let it do all its updates. Pop in you halo 2 game, It will do the another update - This is the update that scans your xbox for anything that shouldn't be on the HD.
7th. Your ready to play on Xbox live with your modchip off and a big Hard drive!
Note: Never play Halo 2 with the modchip on, even if your not connected online, I think it will scan you HD and when you do go online it will send the info to M$. If you want to play halo 2 off of the hard drive, copy it to the HD with dvd2xbox, then FTP to you xbox, go to F:/games/halo2/ and delete update.xbe and you should be fine.
The reason M$ cant tell you have a big hard drive is cuz when you xbox boots with the xbox bios it doesnt recognize the F drive, so there is no way M$ can tell if you have a big HD, what it looks for are files that should not be there (dashboards, games, emulators, font hacks, etc...)
I play on xbox live this way and i have not gotten banned.
XBL tag: bembon