Ghazi, you're in over your head. First of all, PING isn't a way to necessarily measure distance. It's the reponse time, no matter where they are geographically.
I can get a good game going with someone from england (i'm from midwestern USA) without any lag because we both had a low ping.
It's only a measure of how fast your connection is with someone else. That's all.
Also, M$ announcing that they block modded boxes because of their worries about cheaters is total bullshit. Think about how online gaming works in Halo.... You load a similar map, with the same values. If only one maps values are changed (rifle shooting rockets), then the game will freeze or boot you off that game. You can't force your map's values onto someone else's xbox. Your xbox will be saying "shoot rockets" while theirs is trying to read it as rifle rounds. It just doesn't work, unless cheating is native to the game in online mode.
Have you read any forums on this? They all say the same. Also, try it out for yourself sometime. It's just like trying to play the modded Halo map files (halo cxe for example) with someone who doesn't have the modded maps installed, it won't work, period. It's just M$ trying to make themselves look like the freakin good samaritan with "fair play" in mind. Since when is fair play a part of M$'s concern? Seriously? A monopoly concerned about fair play would be a new one to me...
They just couldn't win by suing everybody and pissing everyone off again. All they wanted was to ban the bastards who mod their boxes.
ALso to all you fellas out there trying to figure out how to not get blocked, here are some sure-fire ways you will.
A) booting a different bios before starting the game
B) changing significant files in the root of C
C) changing your hard drive after signing on to live, w/o changing to a virgin retail eeprom
As far as everythign else goes, XBOX2 will suck, just as halo2 sucked (yes, i said it)... who woudlnt' support backwards compatibility?