Yes and no.
Xbox Live is only one service but there are different levels of it. The two levels are free xboxlive and the paid xboxlive gold.
No
yes you can an ps3
They are for xbox live subscriptions for xbox live. If you have one go on your xbox and Settings, Xbox Live, Redeem Code and type the following digits on the card.
Yes you can
you can do cheats on xbox live butif you get cought your xbox gets banned and no more xbox live
In my opinion Xbox live is better because you can party chat and it has less lag, more people use it, It is more organized and it gives more then the psn. psn is laggy
Yes. Xbox has way more downloadable content, better exclusive games, and the graphics are better.
Yes you can, but you have to register again
No, Xbox LIVE will not ban you.
you can't do it on splitscreen. you have to go on xbox live/playstation live to have more than 2 players in one game.
Xbox Live is better if you are comparing features. The only upside to PSN is it is free. But if you have the money, Xbox live is way better. Its way less hacked then PSN, has better voice, does more with groups and so on.
Test your xbox live connection in network settings and your nat type is open