For everyone asking if they can play online on XBOX 360 and if they will get banned on their modded console, and for everyone having errors with their recently bought games.

You will only get a ban if your xgd3 is truncated cause when you do that you remove the CIV security check.
The new XGD3 burn will give more space than the classical because they use the internal border of the disk itself, that space will be reserved for protection and normal Dvd driver cannot read-write on them. That's why you need an iHAS drive to be able to do a 100% burn.

XGD2 games are approximately 7.3GB on size while XGD3 are 8.7GB so 1.4GB bigger.
That's the main reason why Microsoft has changed the media. Of course, they also added the new security checks, such as CIV and new AP 2.5 system as i said before.

XGD3 is a whole new concept of media, so you update your firmware to LT+ 3.0 or keep playing old XGD2 games. Period.
Else if you want to play a truncated XGD3 online expect a BAN.

You may burn your games truncated with any generic drive, that's fine. It's simple and cheap. The matter is, some new games (for instance, EVERY game which came after Forza 4 have the new kind of security check ( CIV ).

If you play a game which is CIV-enabled, burnt on a truncated media, you'll lose some of the new AP
2.5 checks, as when you truncate your media, some data will not be written to the disc.
You'll be flagged for a ban. So, if you don't ever plan to connect your X360 online, or you're already banned, you
can just do it.
Otherwise, buy a an iHAS drive which will is enable you to burn full XGD3 rips as it's 8.7GB in size using the inner disc space, about 200MB over default capacity of the disc and you're good to go.

If you are not into burning your own games then ONLY buy XGD3 burned with iHAS which is unfortunately hard to find in usual places.