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[lordvader129]

as long as you were never on Live before upgrading your HD youll be fine

just make sure you dont cheat on Live and you wont get banned

[_GhOsT_]

its ok to use the larger hard drives on live if you have never been on live with that xbox
i have a 200 gig in mine and i had never had live untill a few months ago

just make sure your chip is off and you have an xbl blocking bios ( the most recent x3 bios has this )

and then enjoy  ( just make sure you dont have any hacked profiles or mods you'll be banned)