Chillin'
If you go to the settings menu in your dashboard and select system you should be able t fin your dashboard version (K: and D: numbers). M$ will scroll a list of naughty bahaviour warnings etc, the number is in that scrolling list so be ready with a pen.
So can you not delete your live account and try to reinstall using account recovery then I take it?
My xbox is a v1.0 too, it didn't come with Live on the HDD like most ppls xboxes. First time I ran Project Gotham 2 it installed Live, I updated through the dashboard some time after that and most recently it updated through StarWars Battlefront being booted up (just booted, not Live menu in game).
A lot of ppl early on were telling me that a Live Update pack had to be purchased anda disc in that pack would load Live onto my system.
Maybe you should try contacting Live customer support and seeing about them sending out a disk like the one they sold back then?
Otherwise I think you'd have to delete the live info from your C: drive and try to start afresh. Glad I kept a backup of my original v1.0 C: drive on my PC.