dude..get an xbox w/ a chip..u will not regret it..and as for xbox live..don't even use it..use xconnect (xbox live clone)...it is the same as xbox live..except it is completely free..oh ya..if u get the chip..u will need to get a dvd burner..or upgrade the xbox's hard drive to at least 120 gb..i have 200 gb in mine
xbconnect is more likely to have laggy games rather than live... for me being in Florida its hard to find a good game on XBC, plus its mainly just halo, some R63 and PGR2