QUOTE(Narbo @ Nov 12 2009, 03:30 PM)

They don't/can't. That's what C4Eva means when he says the firmware is 'undetectable'. It behaves and responds in a manner identical to the original.
Unfortunately, by now I think it's pretty clear that Microsoft has developed some sort of software algorithm which can detect the presence of modified firmware. They do this by either querying the drive or by querying other system characteristics. If you can find even a single instance where the modified firmware consistently behaves different then the original (and it would appear they have) then it's game over.
That's what I figure. They might not be able to dump the firmware, but if they can send commands to the drive and it does something its not supposed to do, they'd be able identify the modded drive.
It brings up more questions:
1) can people who never used live for gaming avoid the ban.. ie never went on live without originals or backups in the drive. People who just went on live to buy arcade games or dlc. Which is where I fit in, and I wasn't banned as of Saturday. Which might still indicate the command MS is sending to the drive is disc related, allthough not dependent on a backup (might happen on original as well).
2) can a new firmware be written to close the bug. the fact a new firmware is on the works indicates it can. Which would seem to indicate they can't dump the firmware, as if they could dump it, a hash check would identify the firmware.