But you should also note, if you try to move any games saves from the banned xbox now over to a live xbox - the data will show as corrupt.
In short - as it is now, whats played on the banned xbox, stays on the banned xbox.
It is CONFIRMED!
Any and all games on your banned Xbox 360 will stay on it. If you do what I do and swap HDDs then your gamer profile will become corrupt along with any game data for any game that you played on it. At least any that has saved on that console otherwise you're fine.