I have an Xbox Slim 4Gb and I have been using it since 3 Years. Soon after I bought it, I got it J-Tagged.

The Xbox 360 lt 3.0 is the new firmware (O/S) for the console. You will be given a chance to download the firmware when you turn and log onto your Xbox live account.

I can buy pirated CD's which are very cheap and work just like the genuine one's. I bought an Xbox Hardrive and I usually install my games into it. But I cannot play online. Previously I had not wanted to go online as I did not know much about Xbox Live.

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But now, I would like to start gaming online, but do not want to buy Original Xbox discs as they are costly. A friend of mine told (from his personal experience) that if I got LT3.0, I could go online without having to use the original game discs but I could no longer install games into my Hardrive.

But that is not the problem. The problem is that I heard that if I get Lt3.0 and go online, my Xbox might get banned and that I will no longer be able to play it even offline. Is this true?

I do not know much about hacking so please try to write your answer in simple wording. If there is any other solution, then please also mention that. Note that I would like a hack which can go online, without the need to get Original game discs. If I could also, along with these things install the games into my hardrive, then that would just be great. Thank you in advance for your precious time! I hope that I have made my problem clear. 1-Getting banned doesn't stop the 360 working otherwise it would be called disabled.

Ok so firstly thank you for replying. Now are you sayingthat i dont have any mod kn mu xbox? I think that i donas the guy from whom i get all my xbox work done said that he was going to do jtag and also mentioned some 'chip' being inserted knto the xbox. And if not that, then i think that i have an rgh chip as i can install games into a hardrive. Also when i go into the folder 'My Games' in my xbox that displays all the games installed into my hardrive, there is a software called 'XexMenu'.

When i run that, I search somewhere in the files and there is another software called Freestyle. When i run that, something like another xbox dashboard comes up. It has most of the folders like settings and i can play any disc inserted into the disk drive through that software. But when i try to go online from the normal xbox dashboard (meaning when i try to connect to xbox live the normal way) it shows some error saying something like 'Your DNS server cannot resolve xbox live server names'.