I wondered the same thing, so I tested it, I had a console that had been marked for banning ( anytime I transferred saved games or my profile to it from another console it would be corrupted) but I could still play online, so I dissconected it from live cause I knew a ban was coming. So I heard the news today and decided to plug in my console and try it, not only did it update fine, but now my console no longer corrupts my profile or save games, my console has been unbanned it appears

ok, after about 5 edits on this post I've gotton my 360 to work, thanks for the link to the guide 

this is the best I could find

http://www.team-xecuter.com/forums/showthread.php?t=52029

But at the top it says

This tutorial is outdated please use the video tutorials to see the easiest way of flashing!

but there is no video tutorial!

Im looking for some sort of guide to update my benq 360 with the new LT firmware, but the only thing I can find is outdated guides or ones from people using xp, anyone have a guild for windows 7 x64?

That honostly makes more sense, I never tried playing games before launch, was too scared 

No, my slim one is the non modded one, it only corrupts the profile if I plug my flash drive into my modded console, then put it back into my slim.

And as far as banning your gamertag goes I think thats complete BS, anyone with half a brain would either reverse their credit card charge for xbox live, or if they have balls sue MS. Cause last I checked MS has no 100% fool proof way to say your console is modded (unless they physically look at it)

http://forums.xbox-scene.com/index.php?showtopic=634465

case in point

But back on topic I unhooked my modded 360 from online and it works fine, I wasnt technically banned yet, so I wasnt having any problems with game saves getting corrupted or anything, it was only when I tried to transfer stuff to my non modded 360.

Well at this point im not too concerned about live anymore, like I said I already have another non modded console for that. So your saying once I actually get banned all my save games will just become corrupt and theres no way to save them if Im using the new dash board? Im mostly concerned cause I like to install my games to the HD, and that would suck if that no longer worked. What program works best for unflagging corrupt data once microsoft bans this console? And Im assuming once its banned I can just unhook it from the internet and do the fix and not have to worry about it again?

but aren't there ways to remove the ban flag and not have the profile or saves to show as corrupt? I was looking into it last night and it looked like there were a few programs that can do that, I just couldnt figure them out.

ok, so when I do actually get banned does that mean everything will get corrupted, or will it be ok since I just made a duplcate of my profile and plan to keep it on the modded console? really dont care about achievement points honestly.

ok, I ended up just copying the profile, so now I dont have to keep switching and worrying about corrupted profiles. Now since I've been apparently flagged for banning, (no doubt by fable 3) is there anyway to remove that flag before it actually happens? I have one of the xbox connection kits, dont know if that will help or not.

i used con flag remover that seemed to work, but you have to do 1 file at a time, which its faster just to redownload the profile. Then I tried batch con flag remover and it just wont do anything, I navigate to the folder on my flash drive but it won't open it for see the files. Same thing with CONSigner.

Thanks, appreciate the tip, I tried modio and was able to select my profile but nothing else, it just keeps looking for the save games which aren't on the same drive. I tried goggling it but I couldn't find any kind of guide on how to remove the ban flag from the profile using modio, any tips?

1st off, its NOT a pirated copy!

2. how is it a banned console if im playing Black ops online?

I came across this problem the other day, I have a modded 360 and a new slim model thats unmodded. Since I cant play my back up of fable 3 Im playing the original on my unmodded one 

I have my profile saved on a use flash drive, the problem is now when I put the flash drive in my modded system it works fine, but if I put it in the non modded one it says my profile is corrupted, but I can just pull it out and put it in my modded 360 again and it works fine.

My modded 360 is not banned, cause I heard this can make your profile get corrupted, any clue on what is going on?

Wow... are you that dense? There is 2 reasons people mod their 360, to pirate, or to keep your original disc in good shape, why don't you google what xbox's can do to games and how microsoft pretty much says screw you if their console screwed your disc.

You want a picture of me with my copy of fable III in hand with receipt?

Pretty sure I never said I pirated the game, thx though

And is there a new update for the benq drives yet for this new AP25 thing, or whatever its called so games likes fable will play a backed up copy? I really don't like playing my originals

*raises hand*

Im one of those idiots 

I tried fable 3 today, not a good idea, after doing more research it looks like im getting banned, but whatever, Ive had over 2 years unbanned on my current system, and it gave me a reason to buy one of the new slim versions =D

In case anyone else is curious or doesn't know, don't play falbe 3, looks like thats gonna be a ban.

IM about to go out and buy a new slim 360, but am debating if I want to spend the extra 100 dollars for the one with the hard drive. I have a 32gb flash drive and my current xbox will only use 16gbs, is there a way to partition it to 2 drives so I can use the full amount of space? Or anything like this.

I was about to update my 360 but thought I would ask first if any massive bans are going on, or is new dvd firmware being worked on for the update, etc.

thanks 

Thanks for the answer. One more question, whats the differance between the pro and the lite for the extraction tool? And anyone know the cheapest place to buy them, looks like 40 for the lite plus 15 for the spear.