Wait I have LIVE on a softmodded xbox, but It has to do with that damn HD Switch I put in I guess.. Oh Well.
If you have an exploitable game, then going on LIVE isnt a big deal with a good installer/uninstaller. Or just manually FTPing in the change works as well.
You just cant go on LIVE in a modded state.
And please try to maintain into one thread, since all the questions you asked were related to the same basic things....