Sorry for this but i practically wrote a report explaining what happened.
A proven Logical solution to what whent on Exactly with the bans.
Before we start you need to understand what stealth firmware is.
A- Microsoft still cant detect FIRMWARE
B- Stleath firmware was designed to hide a backup disc to be a real disc but can not be properly done with the hitachi (read below)
C- Microsoft could detect backup dicsc with all non stealth firmware since day1
D- Microsoft can not detect a backup disc on the Samsung stealth firmwares and the disc jitter was there new way to catch modded samsung drives
Read On to find out how all this stuff ties together with this very likley theory of why and how so many people did get banned.
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How Microsoft Can Detect Backup Discs:
- Read Capacity of disc; this reports wrong disc size for All Hitachi FW, Samsung (Xtreme 3 [AKA STEALTH FIRMWARE] and higher) will pass this check.
- Read DMI/PFI from disc; All Hitachi FW fails, Samsung reports correct DMI/PFI.
(thanks to specialist for explanation)
"Hitachi's are way easier to detect and NEVER will be true stealth anyway, because they can execute code from their internal RAM so MS could upload any detection routine they want. Nothing can be done about that."
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Okay now that we have that taken down lets understand something here.
I have asked a ton of freinds and read all the posts.
It seems that almost all the hitachi's got banned.
But yet there was so many people including myself with samsung's that are still on xbox live.
This didnt make sense at first so i asked freinds in irc, etc, and started this thread at xbox-scene to see what was going on
http://forums.xbox-scene.com/index.php?showtopic=603910It seems that all the guys who have only used stealth firmware on their samsungs are all still online.
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Theory time.
So what happened is months back Microsoft decided to start making a list on consoles who were playing backups on xbox live.
They decided to make a big list of people who were playing them saved the list and decided to save it somwhere safe.
So next person is going to say why not an immdeidate ban. Well the reason they didnt immeditely ban you is reall quite obvious perhaps they werent sure what legally could happen to them and they probally wanted to collect some data such as how many backups you had an used even possibly if you had used originals.
They studided this data and made some conlcusions based on it. Like the specialst said they are not trying to ban COMPLETLY or to BRICK YOUR CONSOLE. If they wanted to the could have easily stopped your console from even being able to play xbox live or they could have mad an image such as "Halo3 Leaked-DeViNCE" then the whole net would download it and inside was secret code designed to brick your 360.
So from this data they decided the best solutions is to tell people listen up if you want to play live you may do so only with your original disc.
Also in the future they're may be open source toallow chetaing in games and this idea of playing your original discs only enforces the idea.
THEY GOT THEIR STUFF TOGETHER DID SOME RESEARCH WITH THE LEGAL TEAM TO MAKE SURE THE WOULD NOT BE IN ANY LEGAL TROUBLE AND DECIDED TO WAIT FOR HALO3 TO SEND THE MESSAGE WE DONT WANT ANY $#!t ON XBOX LIVE.
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SO technically speaking microsoft decided to make a big list of consoles playing backups. SO this is why almost all of the hitachi firmwares have been blocked from xbox live as the speicalst did say ealier basically no hitachi drive is reallt stealth asd it reports back the "wonr values" to MS.
That explains the Hitachi dirves.
Now the question is the samsung drives. I have come the conclusion of this, if you have only played stealth firmwares on xbox live you are still fine because MS cant detcect you. rmeber stealh firmwarw hides a backup as a real disc to MS and the smausng divres reports al the irght values back to microsofy. This is why they're is so many smasungs. I flashed mine in april with 4.2 and then got xbox live and also have not beend banned i aswell updated to 5.3
if you dont belive it check my thread at xbox-scene >>>>
http://forums.xbox-scene.com/index.php?showtopic=603910IF YOU HAVE PLAYED ON XBOX LIVE WITH A SAMSUNG YOU MIGHT HAVE USED AN OLDER EDITION OF C4EVA'S FIRMWARE AND MS LOGGED YOU BECAUSE WITH THE OLD FIRMWARE MICROSOFT CAN SEE IF YOU ARE USING A BACKUP DISC. YOU GOT PUT ON THE BAN LIST FOR USING A BACKUP. IF YOU SWITCHED TO A STEALTH AT A LATTER DATE IT DOESNT MATTER YOU WOULD HAVE ALREADY BEEN LOGGED AS PLAYING BACKUPS ON XBOX LIVE.
THIS IS WHY PEOPLE WHO HAVE ONLY USED STEALTH FIRMWARE SINCE THE FIRST DAY THEY'RE XBOX CONNECTED TO LIVE HAVE NOT BEEN BANNED BECAUSE THEY'RE WAS NO WAY TO TELL IF THEY WERE PLAYING A BACKUP OR NOT AS THE STEALH FIRMWARES FROM C4EVA HIDE A BACKUP AS BEING A REAL DISC THEREFORE SENDING THE CORRECT VALUES BACK TO MICROSOFT.
So here is what happened, One dya micorosft probally saw stealth firmware released. They knew that most people would not use it if not need (IF IT ISNT BROKEN WHY FIX IT???) It seems to me alot ofpeople thought like this and ignored the updates from c4eva because thhey knew and thought ms wouldn ever start detecting backups.
These people all got added to a to be ban list some long time ago.
This is also why new commers to the 360 modding scene have not been effected becase we are knew we probally chooose the newest avaialble firmware anwyays so we were all safe.
SOME USERS AT XBOX-SCENE SAID A WOMEN ON THE PHONE TOLD HIM IF HE USED ORIGINALS ONLINE HE SHOULD HAVE BEEN FINE AFTER HE ADMITTED HE MODDED IT AND HIS KIDS SCRATCHED THE DISCS. THIS HINTS THAT THEY ARE CHECKING THE DISC'S AND THIS IS WHY IF YOU DIDNT USE STEALTH FIRMWARE THAT MICROSOFT WOULD HAVE DETECTED IT.
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SO WTF IS DISC JITTER ALL ABOUT
Anyone who thinks that this was some stupid conspiracy that C4EVA released this to brick your console should burn in $#%!
MICROSOFT MADE THE DISC JITTER UPDATE BECAUSE THEY CURRENTLY HAD NO WAY OF BANNING THE STEALTH SAMSUNG DVD DRIVES ON XBOX LIVE.
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Other conspiracies???
A- The c4eva update was made by ms to trick you and ban your console - highly unlikely
B- The check just the crackdown game (other people said they didnt even use crackdown and were banned)
C- CRC check in firmware i doubt this one is true but is possible but i explan why next this probally is a bad option
D- They are using some remote tools to check drives?

? I doubt this is true they would be to unreliable and not realistic but i am not a tech guy i would like to hear from someone like TheSpecialist
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Business Sense $$$ Wise
Microsoft is about business not playing games with us.
I agree with the specialist 100% on this one here. They are not trying to ban the whole god dam world. They are preventing backups from online play this is why i highly doubt the crc check in the firmware.
They dont want to block your live account cause then you are just going to play.
They still want you buying live and to get the MS points for map addons, etc.
The point of this wasnt to piss yuoff so much that you dont play xbox anymore.
Also dont forget MS now can sell the console for more than it costed to make it because they got down the manufactuirng costs very low so they arent losing if you buy another machine anyways.
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SUMMARY
Microsoft has been collecting data for a while and waited till halo3 to ban everyone. They were doing this buy checking your backups. SO all hitachis got banned pretty much because no hitachi is stealth, and people who used old xtreme firmware got baned. People who have only used stealh firmware with they're hitachi's are all fine and also people who would have upgraded to the stealth firmware before ms secretly started recording backups (people who use non stealth firmware). Disc jitter was going to be the new way to detect the stealth hitachis but c4eva's new firmware puts this to a end.
THANKS! sorry for the long read but this does make alot of sense.
Keep on Hackin!
Lesseon Learned- It pays to be safe even if not always necessary (wearing helmet on your bike

) So next time make sure you are always more secure even if it isnt necessary at the given time. And (WHY FIX IT IF IT ISNT BROKEN) may not alwaywas apply for xbox modding lol.