The inevitable has happened according to a multi-page thread on XBox-Scene (linked above), it appears Microsoft is now beginning to ban homebrew XBox 360 consoles running freeBOOT or XBReboot from XBox LIVE.
This move comes just under two months from their last XBL ban wave, and while there are guides to unban your XBox 360 from LIVE and to prevent XBox 360 HDD crippling, it appears the safest route if you use XBox 360 homebrew is to simply keep the console off XBL.
To quote from -DeToX-: "Well.. it seems new bans have been handed out, just now.
I just have over 7 people with XBR/FreeBOOT consoles report to me that they have been banned, and I as well have. However, anyone who played hacked games with these people remain untouched.
I was playing MW2, when I was disconnected from live. I went back to dash, and I was able to sign back in. Restarted, and I could still sign in at the dash. I turned it off.. Waited 5 minutes. Tried to sign in, console ban..
Good job Microsoft, bout time you disallowed this to be on Xbox Live."
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