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He said he was using a new stock HD.
It doesn't fuc348ing matter If you use stock HDD or bigger HDD.
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When I went on my xbox for the first time with the new eeprom and HD with my gamertag it said that if my xbox was connected to the internet it would connect and check for something... I don't remember exactly what it said but it was something like that. Would that have anything to do with it?
Don't think so.
Problem was: HDD serial number was already banned - or you get a banned Eeprom
It doesn;t matter If you sign up for Live again with Stock HDD or bigger HDD.
I sign Up again fpr Live with Bigger HDD - because I was not going to open my xbox and change bigger HDD to stock HDD just to Play Xbox Live.
So - all you have to do - You have your Stock HDD - upgarde HDD - don't sign up for Live r anything. After you get all your Stuff in thie New Unbanned HDD - then update Eeprom using Configmagic. Now - sign up for Xbox Live with New account - and it must work.