This is retarded. They are banning people who fixed thier own 360!!!!!!
These bannings have been quite widespread, and at 1,000,000 users that is roughly 5% of the Xbox Live subscriber base. But are all those being banned, pirates? I spoke with a representative from Microsoft breifly at Major Nelson.com and learned some interesting information. Regardless of whether you modify your xbox to pirate games, or just modify it to look cooler, perform better, or last longer, these actions are against the terms of service agreement that you accept when promted to on the Xbox Live login.
So legit Xbox Users please keep this in mind, when your Xbox 360 gets the RROD a quick fix by you is not the answer. Not unless you want to be eligible for a banning. From what I gathered if the warranty seal is broken on your xbox 360 you are in violation of TOS and will be banned from Xbox Live if this is discovered......