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Well, if you hot "go live" in a retail game, it will attemp to connect to xbox live. If the dashboard is not a live enabled dash, it will update it for you.
I believe your live account is on E, but i don't think it can be copied to another hdd. If it can, then I guess it just failed for me. You problem is pretty wierd. Is there anything you could have done to get banned? Like maybe you had your chip on after you updated to an xbl 2.0 dashboard (where it logs onto xbl when you turn your xbox on. It can be disabled though).
Im not sure what it could be. Go into the memory (dashboard) and delete everything that has to do with xbox live, like account info, auto updater. That may help.
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