I'll start by saying I'm a modchip owner and I disagree with the premise behind exploits (in that most exploit users seemingly pursue that route because they're a big fan of shortcuts and doing things the quick/easy/free way at the expense of reliability).
However, I disagree that there is any new protection involved here. I think digitalman42 is blowing a lot of smoke up everyone's asses about protection. Now he has some words of wisdom from Mido, whoever the eff that is, "confirming" that there is some protection in place. This guy is saying that the newest BIOS releases are necessary, but they contain no more copy-protection circumvention that BIOS releases that have been out for 6 months. So why is 4978.03 necessary? Why not 4977? Is it because Crimson Skies requires that an FTP daemon be embedded into the kernel?? It makes no sense.
I guess nobody has considered that there MIGHT be an imperfection in the exploits. Perhaps the underflow can only be exploited so far, so to speak. Perhaps this isn't something that can be patched.
Alternatively, perhaps it's just a new feature of the most recent XDK (5659?). Perhaps it's just a matter of how these files are compiled using the recent libraries that conflicts with the exploits.
Why is it that everytime something doesn't work for a few users (and despite the fact that it works fine for most users), it MUST be some new kind of protection from the MS Empire???