The new NXE currently released requires Xbox Live to install, once its flashed your console it still needs files from Xbox Live to finish the install. As to why your banned is none of our business, but could have the following reasons: Modifying the DVD Firmware Playing the "Review" copies of Fallout 3 and Gears of War 2 Using the trick to connect to live with the preview build. While I doubt this, its not worth dismissing totally. So I'm guessing that anyone banned from Xbox Live cannot install the NXE until an offline installer is made by Microsoft (which will most likely be included in any games made after today as they always include the latest dash on every game disc for people who dont have an Xbox connected to the internet. You may have to wait till then. But I can confirm anyone who installed the NXE from this site that I know of, have all managed to go on Live today and they get the update message, and update with no problems.