QUOTE(Jazsun007 @ Jul 10 2007, 03:11 PM)

Hey smart one, you just said that they are checking when we are offline. (which there is absolutley no proof, of and is probably just speculation), so if they are checking when we are offline then we obviously we don't have to obey the Xbox Live EULA. Hints we are NOT on xbox live. That's like saying, since I bought this PC from Microsoft they can put software on it which checks for illegal programs w/ out me knowing. Sounds an awful lot like invasion of privacy. And it's not like I'm doing anything wrong since this is a backup of a Game I OWN, thus I am on the laws side.
I'm fairly sure that MS is not doing offline checks, again there is no proof just word of mouth to scare people.
Actually it is a FACT that they are doing offline checks... we just don't know if they are using that information for anything. (or ever will). It is not a violation of privacy or against the law. Technically just by modifying the box and going on Live
YOU are already in violation of the agreement.
And the Xbox Live EULA states...
"MS may retrieve information from the Xbox used to log on to Xbox Live as necessary to operate and protect the security of Xbox Live, and to enforce this Agreement."
"Xbox Live may only be accessed with an unmodified, except for Microsoft authorized repairs and upgrades, Xbox video game console. Any attempt to disassemble, decompile, create derivative works of, reverse engineer, modify, further sublicense, distribute or use for other purposes either the hardware or software of this system is strictly prohibited."