The other day I reported that I was getting emails in from disgruntled Xbox Live users who had been banned by Microsoft for allegedly connecting to the online service using modded consoles even though the consoles were totally unmodified. Today I'm hearing that some of those affected are finally getting somewhere with tech support.
Initially, Microsoft's response had been that the process used to identify modded consoles (a process that would allow the console to play backed up game) was 100% accurate and that there was nothing that Microsoft or users could do other than buy a new console. At the time Microsoft wouldn't even take the consoles in to be checked or repair. Now is seems that things have changed. I'm still waiting for official word from Microsoft but according to several affected gamers that I have spoken to, Microsoft is now backing down from the initial stance and some consoles are being unbanned and others taken in for repair.
As to what the magic words that you have to say to tech support are in order to be listened to, I'm not sure, but I imagine that polite persistence is the way to go.