Sounds more like you are having issues with the box not reading games over the lack of xbox live. yes there is a fix but it is pointless unless you have another xbox's that is broken that you pulled the keyvaults from prior to it not working.
The xbox is not reading original games likely the laser has become weak look into "xbox 360 POT Tweak" to remedy the disc's not being readable. also this will not fix the problem forever as the laser is coming to the end of its life and boosting the power will reduce its remaining life span look into getting a replacement drive for your xbox as it is only a matter of time until you will need to replace it.
Drive replace is easy as when you buy a new drive you can just swap the pcb board in the new drive with the one from the old drive and you will be up and running right away ( no need to reflash the PCB with the motherboard matched keys.)
Ok I know this post is old but if you have modded Xbox 360 you need to buy a new KV aka key vault look up on how to replace one it's easy and if is a account ban make a new account and spoof the Xbox live gold you can find a gold spoofer under the JTAG/RGH section at www.se7ensins.com
If u change ur ip manually every other day u wont get ban
I cracked my Xbox 360 white console it is old 2011 model it fell down nothing happen but it is pirated disc i hear some noise while Reading sometime open tray unrecognised disc i want to connect to Xbox live and update my console please reply and inside game to play os is taking more time but still I not ever connected to live
door Albert enstain
Hey Albert enstain, I also wan to play online on my modded console. I searched on other websites and it says YES, you can play online without getting banned in 2018. Please Help Me