you cant have a modded xbox and get on xbox live at the same the only way u can is if (pretty sure)have a software modded xbox.harware like mod chips wont let you sign on xbox live.
No, softmods will NOT work on XBL. You CAN buy a 7th gen mod chip and still play XBL, the only thing is that you have to disable the mod-chip before you play, usually with an on/off switch. Some mod chips will even work on XBL, just research it some, you'll find it.
i used a mechassualt uxe with unleash X and i could get on xbox live. i know if you have the mod chip off you can get in xbox live but can you post a link.i cant believe that a mod chip can be on and you can get on xbox live.im sure its possinble tho.
You can because the chip hides itself form the system. This was a cause of great concern for Bungie. hehe