You will prolly not get banned but you would still need to buy the games while connected. You won't need to connect again to play them unless you change 360's.
Looked around and found the answer myself! USING THE DEFAULT SKIN You will see a folder icon. Select it with the stylus. You will see 2 tabs at the top of the bottom screen. (Option & Cheat) In the Options tab you will see Cheat. Select it with the stylus and change it to On. Pick the Cheat tab with the stylus. If you have cheats available you can checkmark them here to use. When your finished select SAVE on the bottom left of the bottom screen. Now when you start the game the selected cheats will be active.
That's odd. Which key did you use? The first one for 32-bit Check your date/time. Mine randomly set itself to 2010 for some reason. Mine is doing that also, Should I re-install it again and try a different key?