Xbox 360 hackers and modders have been served for their breach in the Xbox 360 Terms of Service. If you received a screen telling you the console has been banned, you've been caught...
It is important to note that your gamercard isn't banned from Xbox Live, just the console in question. You can use your gamercard on a non-modded Xbox 360 without an issues.
Why now? Maybe Halo 3 has brought out the modder crowd and Microsoft wants to hit them while their network is being heavily utilized. Is this the right course of action for Microsoft? It is a terms of service break but should the console be banned because its modified? Or should you only be banned when performing online cheating or game pirating?
We're not exactly sure what constitutes a "mod" but whatever it is, you're console is on the MS Banhammer list.
source: xbox360fanboy
