X-box live and a chipped box?

[haech]

Can you run X-box live on a chipped x-box? I'm considering increasing the hdd to dose that raise some more problems. I mean if it can down to it I's keep the chip as the ability to play region 1 dvds out weighs the multi player experiance but idealy I'd like to be able to do everything that I can do now with the chip and then also play online. Would a work around be putting my old x-box hdd back to its original state and swapping them (with the use of a BIOS switch) when needed?
Thanks
-How.