I have a comment, questions:
I updated my console with the latest Kinect Dashboard. My console has a flashed Hitachi drive spoofed as Lite-On. I tried Fable 3 and I got the disc error message, meaning it did not pass AP2.5. My questions are:
Is my console flagged because of that one time not passing AP2.5?
If so, Is it possible to reverse the flag by playing retail copy of Fable 3?
Should I get trade-in the console before it gets ban?

First question: Probably.
Second: Unlikely.
Third: It'll end up in a situation where they go by your house and demand their money back.
And agree on mdoggie, just read the news that passes by and if you checked other threads about the banning and whatnot , you would know an answer to your questions.