sorry, the detect even with chip off is my theory. because technically the chip is still attached, and we're not sure how MS checks for a modchip [not 100% sure anyways], i just said that it's best to be cautious about that.
opjose is the main man. i'm just taking guesses here. so, yeah. don't trust the system even with your modchip set to off. only trust a physical disconnect. for now.
hopefully something comes through. remember, hasn't even been a week since release of xbox live. lots of breakthroughs [well, just really good theories and ideas] have come through so far. let's wait to see what they do for us.