QUOTE(t00ny45 @ Jan 12 2008, 08:00 PM)

M$ read your firmware (the thing you flashed), not the games you play, so you have equal chance of getting banned by playing back-up or original games.
If that was true, everyone who has flashed their firmware would have been banned. The current theory is that as long as you use 1:1 backups (created with a samsung 360 drive) then you will be ok on live. Therefore, using originals in a flashed drive should be fine, for the time being at least.
I flashed my 360 with iXtreme 1.4 5x, just to make the drive quieter. I don't care about backing up my games, I just use the originals. I play on LIVE all the time and havn't been banned. Watch out though, if M$ do start detecting the firmware, you will be banned whether its an original you are playing, or not.