Hackers Dodge Xbox Live Shutout
An Ars Technica post at their games column Opposable Thumbs points out that, despite Microsoft's best efforts, hacked Xbox 360s are once again playing on Xbox Live. "Steadfast in their pursuits, the hackers of the Xbox 360 scene have managed to best Microsoft's Xbox Live Banning protocol: a system of checks in place to identify hacked Xbox 360s and deny them access to the Xbox Live Network. The current method of hacking the 360 involves exploiting the firmware of the DVD drive (the preferable method), and this latest patch does just that. In fact, the creators are so confident in their breakthrough that the info file remarks that the new firmware 'defeats all current and some future Xbox Live detection attempts.'"
Actually, the hack in question only allows the use of copies. There is an exploit which allows the execution of unsigned code, but it only works on a specific version of the kernel. Connecting to Live would automatically update the kernel (dash console), which would patch the exploit. So any claims that they are protecting against bots and cheats is pure FUD, since bots and wall hacks *do not exist* on the 360 (at this time); at least none that would work on Live.
Eventually another unsigned code vulnerability may be found (which is what you would need to run a modfied client), but this will almost definately not be a result of modifying the DVD-ROM firmware.
https://www.eff.org/https-everywhere