The crux of the matter is that the warranty on an Xbox 360 "is not transferable," so if you buy a used console "that has been previously banned, you will not be able to connect to Xbox LIVE." So if you buy a used Xbox 360, make sure it's from a less-than-shady party—and if you buy from a used games shop, make 'em connect it to Xbox Live so you know you're getting something that works.
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