Hi, I am planning to get myself a Xbox 360, the sales person recommended me with both modded and unmodded console.

The salesperson only briefly explain to me that modded consoles are unable to connect to the Internet or join Xbox Live, but he was unable to explain further when I enquire about the details....anyone able to assist to tell me why ?

But the package that he is selling me, is the Premium Console, that includes an original copy of N3 - Asia version. So despite I am using a modded Xbox 360, do I still encounter problem if I use an original copy of a game ?

And of course, what are the other drawbacks of a modded console?

Thanks in advance