Quoted:
Is there not something on Xbox Live that will kill your Xbox because of the mod?
Nope.
Plus the new xbox's basically will accept any 2.5" HDD.
They use standard harddrives with Microsoft firmware. The first step is flashing your hard drive to the Microsoft firmware, and there is noway Microsoft can tell the difference. Plus you get banned for modifying the console, not the accessories attatched to it.