Ok- time for process of elimination:
What happens to an XBOX when it's been modded?
We'll take mine for example?
Version 1.0
xecuter 2.2 pro. As far as physics go, as long as the chip is disabled, there is no way it could be detected, so this hardware change is a moot point.
120Gb western digital. Assuming software is as stock, there is a new physical hardware device, and different serial # for HDD. That is change #1
HDD C:/ partition changes with installation of new dashboard(EVOX, AVALAUNCH) folders man include skins, exox.ini ect. That is change #2.
Addition of extra partitions on HDD, such as F and G partitions. that is change #3.
Installation of homebrew apps. Change #4.
Installation, and patching of various retail games, that were not intended to run off the HDD. Change # 5.
Almost everyone must know by now, that homebrew apps, make subtle changes in the E partition. We know this, and a good example would be for people who have crashed XBMC and have had to delete the 0face8 folder to reset XBMC to run it. Another very obvious example, is many homebrew apps create "gamesaves" for some reason in the XBOX dash under the memory tab. that is change #5
I think that everyone will agree, that these are the most common and basic changes that occur to an XBOX once it's modded, so I believe, whatever M$ is scanning for, is in those changes, thus making it possible to eliminate the majority of modders, or rather modded XBOX's. So what WE are trying to find out is HERE. M$, cannot detect something unless it has changed.
As far as M$ trying to weed out cheaters, I think that is BS. their revenue is damaged by modders(or so THEY think), and not by cheaters so much.
I've had a modded XBOX for two years now, and logged on to XBOX live for the first time AFTER the release of HALO2. So far, no ban. I'll check in the morning to see if I'm still not banned. The only precautions that I've taken, is to delete any illegitimate "saves" from the E partition, such as boxplorer, and any other app saves. We'll see in the morning what happens.
cheers
vyper883