Thoes people where liars, It can't be hacked with the xbox AR, since it isn't a memory editing tool, just a save manager.
The only way to "hack" with AR is to transfer a character to memory card, and then upload that save to say a save wesbite (xbox-saves.com) then download the save to aanother memory card.
then go into multi mode, select your character, then for player 2 select a temp character and chose the character on memory card.
Most people copy the save right from the xbox, and this is why it dosen't work.
however copy to memory card from pso, then load to the hdd from memory card in pso. This method works 100%
Tried and tested by me.
hope that helped.
Please note that 90% of the character saves out there where NOT done like this, so that explians why they never work.