ok, until I see a GAME running, he hacked your arse as far as I know. The 360 WILL play a stupid video someone put on a CD. It's a video for christ sake. If you try a GAME backup, the 360 will do a media check as soon as the cache is clear and the disc spins up again. We've already tried with original xbox games.
If you don't believe me, try it yourself. Take a Halo 2 backup, set your 360 up the same way with the DVD drive open on top. Start the game, stop moving for a while and let the disc spin down. Switch to your backup and resume playing. The game will only run until the cache is out, and then you get a dirty disc. If you really wanna be funny, just take the disc out and watch it play.
So, like I said, anyone could make a video. Show me a game and give some proof, not these dark videos trying to hide what's really going on. You don't have to have darkness EVERYWHERE if you just stay off the camera. Not like the CIA is looking for you.