Catch-22
 

Alright I understand that the new chip will be won't be able to be detected because of the on/off switch but if you turn the chip off does that mean you won't be able to play the burned games online? Is it an either or?: Either you play your burned games with the chip on OR you buy the real store game and you turn your chip off.

I am hoping you can play your burned games online.

You can't play copied games online. If the chip is disabled, the xbox acts like it was never modded. If the chip is on, then you get banned. There maybe a hack around this in future releases, but MS will likely fix it.