Modded 360 = ban?

I hope this isnt a taboo subject here, but ive read online about 360’s with modded firmware get banned from the LIVE service… can you also get banned if you have a mod chip installed? or does having a modchip not effect your firmware? any help would be appreciated! Thanks in advance!

Yes, the console itself will get banned from Xbox Live if you modified the hardware.

i know a couple people now, that swear by modding tho… they’ve had theirs modded for 6+ months now, and no problems… im just afraid of it… my old ps1 was modded and it was great… if i could get a 360 modded with no problems id be all over it… but the whole banning thing sucks…