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Well, all x-ecuter bios 4981 and newer have an "xbox live disabler" patch. Basically, it stops xbox live from accessing the internet. I don't know specifically how though, since I didn't research it at all. Never the less, that is not something to rely on (as they put it), it is just a protective measure which can still fail (although I haven't heard of it stop working yet).
Also, since xbl only banneds the xbox's eeprom, you can still use the account on another xbox. Alternatively, you can get a new eeprom for the banned xbox and have it live enabled once again.
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