Hi,
I didnt install any firmwares/Chip on my Xbox360 yet..
Just got few question before doin any of that.
1.Whats the Diff btween the firmware and the mod chip?
2.If i installed a firmware/Chip and play backuped games without logging on Live. and play Original games in Live online ... will i be banned ?
3. If i got a firmware/mod chip installed...i will be able to use live?.. like downloading demo's and friends list.. without playing Online.. i will still get banned ?
Thanks!
Best regards

1. Mod chips accomplish the same thing as a firmware flash, except that they *might* be a little more safe. I say "might" only because no one but Microsoft knows for sure.
2. I can only tell you that from what I've read you're much safer if you follow a STRICT rule of only playing backups offline. And by "offline" I don't mean "not in multiplayer mode" - I mean signed out of Xbox Live and with your ethernet cable unplugged (just to make sure). Most people seem to believe that that's the only safe way to play backups without being banned.
3. See #2. The general consensus is that if you stay completely off of XBL while playing a backup game (I don't even keep one in the tray while connected) then you're pretty safe. But to answer your question, yes, you can get online once you've flashed/chipped. Just don't play backups online or, if I might add, play backup games even in single-player while signed in to Live.
nothing is 100% safe. If you're looking for absolutes, there are none when it comes to modding your 360 and staying on XBL.
P.S. Use iXtreme 1.4, whatever you do.