unable to connect 360 to live ??

M$ wouldn't repair a modded console you would just get a email saying they are keeping the console due to un authorised modifications
You say it fails on the first bit?, the first bit is communicating with your router if its failing there then either the port is broken or the cable is defective, check different port on router, if its still failing on the first bit you could try using a wireless adapter and that will get it working.

If it was a banned console it will pass the first bit (which is your router) and then pass connecting to the internet but then it will fail on the connecting to xbox live and you will get a message saying the console is banned.

If you aren't getting that then its not banned its as I said either the ethernet port on the xbox or your router or the cable change and check these things mate like I said if its failing on the first thats nothing to do with the console or xbox thats communication with your network (router) second is the internet and the third is xbox,live hope I've helped but to me the console sounds fine so far you need to get it to the bit where it actually connects to live mate first 2 aren't xbox.live

 

ooh i see all new to me as ive never really had connection issues ill dig out a wireless adapter and give that a try when i can i dont think it will be the cable from the router to the 360 as it works fine on my others .

 

in connection test there's 3 parts 1.Router, 2.Internet, 3.Xboxlive.
if you have it connected to a working router it will pass 1
if you have a internet connection it will pass 2
if xboxlive is up and running and your not banned it will pass 3

even if you have no internet connection but the router is powered and connected to the xbox it will still pass the first bit so if yours is failing its either Cable, The ethernet port on the xbox or router.

Just try several things mate but wait until its done the first two things until you may worry its a banned console.
As I said it will fail on the 3rd one if its a banned console and tell you its banned

 

My fist console was banned without being modded. Marketplace fraud can do such a thing so can stealing users accounts. I'm sure there is more ways to get a un-modded console banned as well.

 

this is what im thinking mate as this is still not having it wireless or wired .

 

right silly me i had to do this before a few years ago problem solved by resetting it to factory default settings how silly do i feel ..