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If you are not much into soldering you can always get a solder-less modchip.
Those can only be applied to xbox version 1.0-1.5.
About xbox live, some modchips claims to be "live-secure" but I am not so sure about that.
I have read about people that has been banned from xbox-live with the modchip turned of and stuff...
Guess the best way is to either have 2 xbox's (one chipped and one not chipped) or find other ways of playing xbox online.
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