Kudos to TheSpecialist.
But, outside this you all should make a step back and give a look at what this discover means.
Not only Microsoft locked down hard disks with a key system, they also used a scheme that makes an HDD swap really unfriendly and you cannot get rid of it (oh, and stop the useless "when they'll hack the BIOS" crap).
You've your points when you talk about PS3, but you can put EVERY 2,5" HDD inside a PS3, either a 3,5" model with an adapter and it "just works"...
So, just for once, stop this collective climax you're getting for the news (yeah, big deal, you can die trying to find a BEVS just to get 20 Gb on a nonstandard cartridge... AWESOME, MAN!) and just accept, only once, that MS lockdown policy sucks.
Admit that the entire mod scene is lagging, admit that after a year of almost nothing the only thing out there is a hack to use pirated games and STOP the bullshit about "now they are one step closer".
Just for once keep in mind that if they (who?) succeed you probably won't ever need to copy security sectors from disk to disk to make your (put a number here) GB disk work.
Geez, the XBox 360 scene is so depressing...