The other day I reported that I was getting emails in from disgruntled Xbox Live users who had been banned by Microsoft for allegedly connecting to the online service using modded consoles even though the consoles were totally unmodified. Today I'm hearing that some of those affected are finally getting somewhere with tech support.
Initially, Microsoft's response had been that the process used to identify modded consoles (a process that would allow the console to play backed up game) was 100% accurate and that there was nothing that Microsoft or users could do other than buy a new console. At the time Microsoft wouldn't even take the consoles in to be checked or repair. Now is seems that things have changed. I'm still waiting for official word from Microsoft but according to several affected gamers that I have spoken to, Microsoft is now backing down from the initial stance and some consoles are being unbanned and others taken in for repair.
*update*
Looks like microsoft can officially *unban* a console!
forums.somethingawful.com
The thread above is about a upset consumer who claims he had a unmodified system and got a ban. After some upsetting calls to MS, and several supervisors, he got his case escalated. Apparently after a few days, he was able to sign on live again! Strike one for MS, looks like their super robot 100% fullproof ban hammer is a flimsy inaccurate banana.
I urge all users whom were banned to call and throw a fit, get your case escalated and see what they will do! The proof is in the pudding, and you can eat it too!