Softmodded Xbox 360 but Not Playing Pirated Copys?

Ok so my cousin is giving me a xbox 360 but its soft modded and it can play burnt games. But i wanna get on live so the problem is that even if i have a modded xbox 360 but i still play retail copys from the store will i get a console ban? or a xbox live ban o.0? im trying to be legit here

Suggestion:

Microsoft doesn't look for the original DVDs or ROMs, they just look if its tampered with. and if they find out ANY tampering, irrespective of you playing original or pirated games, you WILL be banned.
Options:
1) Buy a new unmodded Xbox360 if you can afford it (I can't!)
2) Play offline and enjoy your legit games. Don't even try Live in this case.
But I do think softmodding is really meant for backing up your legit games and playing them, and NOT pirated ones. If you have a softmodded one already, then congrats, you can take advantage of backing up and playing that if you break any of your original DVDs. Just please don't use pirated copies as that shades off the basic viewpoint of being legit.

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