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MS bans your xbox's eeprom. It's basically a serial number. If you get banned, you can get a new eeprom from another xbox (as long as it's not planning to go on xbox live). The process of replacing your eeprom is a lot of extra work though that can easily be screwed up. However if you happen to get banned, some people sell unbanned eeprom's in at XBox-Scene.com in the BST section of the forum. Generally cost about $10 each.
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