It looks like Microsoft has finally brought down the hammer on modded Xbox 360s. With the release of the Halo 3 beta and as part of Microsoft's efforts to make Xbox Live a fair, fun, and unified community they are actively banning any Xbox Live connection from a 360 that has been hacked or modded. So, as such, the Live account isn't actually banned, just any connection to Xbox Live from the console is banned. As a result, some people may be finding that they can't connect to Xbox Live and get an error message similar to the one above. You know who you are and shame on you.
What do you think? Is banning modded Xbox 360s from Xbox Live a good thing or is Microsoft taking their banning powers a little too far?
[Thanks, to everyone who sent this in]