no they do not if you put it on your file share=yes
I can insure you that you will not be caught by Microsoft and banned, Microsoft can not track your consol but can track your online account, but it don't matter since you got your Xbox 360 modded into the hardrive not on your online account so therefore Microsoft cant ban you and you are free to download any content online.
You can not get hacks on your Xbox 360 with modding it. Since there are lots of different mods and different places to get it modded, it depends, but I am guessing that it would be around $100 to get it modded. I do not recommend getting it modded though, as it is in a shaky spot of whether it is legal or not, and Microsoft could find out and ban your account.
Modding an Xbox 360 is safe, in terms of the actual hardware is unlikely to begin to experience problems (overheating, power surges) more frequently than an unmodded system. However, it is unsafe in terms of the fact that Microsoft can and usually does ban modded consoles from Xbox live.
If the dashboard has the marketplace then I cant see why not. However, a ban will be on your xbox if you may do so.
No, because if the Xbox Live Policy Enforcement Team finds out your playing on a modded Xbox (and most likely they will) they will issue a console ban. A console ban will make your console useless and you won't be able to play on it. Also if you are planning to buy one from someone be careful as I heard of people selling modded Xboxs and when the person bought it they figure out it has been issued a console ban and then they wasted their money for nothing.
Yes you can. Every so often members of Microsoft will play games like halo 3 and COD. If they see that you are doing something that isn't natural, they will ban you.
They do it randomly so you cannot forsee it and try to beat the system.
No they will not ban your interenet but they could in theory take you to court but most likily won't...Just don't pirate again and you should be fine
Could be a lifetime ban many are
In short, yes you can, Microsoft has the ability to console ban you if you have broken the terms of use or have broken a rule they have applied.
the chance of getting caught is very high plus if you xbox brakes and only Microsoft can fix it the will ban you and not fix the xbox
Yes, But Microsoft are 80% likely to notice you have got a chipped xbox and will ban you from xbox live on that account and xbox resulting in getting a new (Unchipped) xbox and making a new profile on a different email address :(.