Here is a guide to recover your banned XBOX LIVE Account Ok lets get started:
Things you need:
USB Flash Drive or a Transfer Cable
Banned Xbox LIVE account.
Xbox 360 (obviously)
Step 1: Start recover your gamertag
Step 2: About half way through the recovery you will receive an error and it will say something like “Xbox live signup is not available”. Then it will bring you back to the dashboard.
Step 3: Go to system settings and move your account to your USB(unless you have a transfer cable) By going to system settings<memory<gamer profiles< move your banned account
Step 4: Plug your USB into your computer and extract the banned profile to your desktop.(guessing the majority knows how to extract it.)
Step 5: Open up HORIZON
Step 6: Under profile mods click “Account Editor”
Step 7: Open your profile into it.
Step 8: You will see a gold button that says recovering. Click it. It will turn gray.
Step 9: Click Save.
Step 10: Move it back onto your Xbox or use it for whatever reason you wanted to recover it!
Credit to: fivestargamerz.com’s 5*SAMz