QUOTE(PedrosPad @ Jan 18 2006, 10:33 AM)

So the 30 second test of exchanging
same manufacture DVD-Rom drives between 2 X360s would appear to be all that's necessary to proof/disproof the per-box encryption theory!

Read the firmware hacking thread. This has actually been tried already and it simply does not work.
QUOTE(PedrosPad @ Jan 18 2006, 10:33 AM)

Whether it matches the stickered serial number or not, if unique on every drive, it sounds like a serial number to me.
The drive firmware contains an AES encryption routine. Which uses this 'key'. It also looks like a (256-bit) key and not like a simple serial number. The firmware also contains routines which can write to the region which contains this 'key'. These facts are also mentioned in the firmware hacking and thread and were discovered by others. The 'key' is probably written to the drive when a x360 is setup for the first time by using a setup disc or something similar. The same 'key' is probably also written to the firmware of the console kernel.
QUOTE(PedrosPad @ Jan 18 2006, 10:33 AM)

It may contribute to an X360-console unique machine/configuration hash/digest (which, in turn, may be a component of some XBOX!Live authentication procedure like the old XBOX1 HDD key), but drive-to-console encryption? I think very unlikely.
Unlikely? Well, all clues/facts seem to tell a different story ..