u can hale.. just not with a bigger HD..
make sure u turn off the modchip when you do it.
I packed my xbox in a bag b/c i was bringing it to a friends house.. i took it out and hooked it up to xb live, and the modchip switch was TURNED on, it always does that when placed in a bag. I didnt know, i tried loggin into xblive, and it wouldnt let me.... I then realized that i had my chip on, so it worked when i turned it off. 3 days later i was banned