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Open-Source Xbox Modchips
DonatusIgnis writes "Our Australian company has decided to release the PCB designs for all of our Xbox modchips back to the modchip community. We are starting with our modified version of the CheapMod, and the Protel PCB files are already available on our website. Once we are sure that this is the right way to go, we'll also release the design for our multi-bios modchip in the next few weeks. Considering how much every modchip manufacturer owes to the Xbox pioneers who blazed the trail before us, it would be great to see more companies giving their work back to the general modchip community under an open-style license." See the Aussiechip homepage for FAQs and details - interesting stuff.
Have a look at the paper Keeping Secrets in Hardware: the Microsoft XBox Case Study by Andrew "bunnie" Huang, XBox hacker extraordinaire.
Also have a look at his xbox hacking page for lots of other goodies.
Same way you figure out anything. Pull it apart.
It helps to be knowledgeable about hardware and software and authentication in general. I'm guessing there's not much (if anything) in the Xbox that isn't well documented by the past 30 years of computer textbooks. The trick is in knowing enough that you can pull something apart and go "that bit there is a foowhatzit defrobulator using a gharblizing codifrier". If you're not sure then make an educated guess.
It also helps to have the right tools. You can't just stare at a bus or a ROM and magically divine what they do. At one point you're going to need some tools hooked up to the right wires.
Once you've got those two obstacles out of the way you just need that special ingredient called "determination". That's the rarest ingredient on the planet.
Disclaimer: I've never hacked on the Xbox, though I've hacked on other things.