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[InsanePyro]

I recently was working on getting a 360 I got to work with a ATX power supply and just to test if it would power on or not I powered it on with the dvd drive not attached. It red ringed (as I expected, remember I was just testing if it even turned on) and was not connected to live or anything...is it banned?

[Ketchup_Bomb]

Removing the DVD tray from the console isn't going to do anything to it. You most likely have the red rings to indicate there's something going on with the Xbox... it doesn't have a DVD try and it's freaking out.
Even more supportive is that I doubt you had a network cable plugged in when you turned it on with the DVD try, and I doubt even more so you had a Live enabled profile to pull any information down from Xbox Live. You'll be fine.

However, if the console is already banned before all this, there's nothing you can do.
There is an app out there called XVal which decrypts your console's SECDATA.bin and is a good indicator if a console is banned or not.

[opencube]

My cousin's son has just reported that his modded 360 has been banned from LIVE, and also mentioned that he knows of others that it has happened to.

I cannot get further details at yet, but will try to later.

Apologies for being sketchy about this, just wanted to give the heads up.