If you are one of the million or so Xbox Live users who were banned from the service, things aren’t as bad as we thought. Some modders are working on a solution that will revert the firmware to a state that is nearly the same as the stock firmware. Hopefully the end result means that you’ll be able to use your console again and not have to buy a new one.
Right now two fixes are being worked on: the iXtremeLT and one from Xbox-Scene. The first isn’t ready yet, and the latter works, but you should be aware, it is very complex.