ok, i e-mailed them this:
"I have been reading articles concerning the banning of certain xbox consoles from Xbox Live for being "modified" (ie. "modchips", "softmods", hard drive upgrades, etc.). How is MS going about this process? How does it detect if a console is "modified"? What types of modifications is it looking for? Any details reguarding this issue would be greatly appreciated."
....and got this in return:
"Thank you for writing to Xbox Live regarding your inquiry about mod chips. We understand that you want to know how can we detect if the user is using an Xbox mod chip or upgraded console. Rest assured that we will do our best to assist you on this concern.
Usually our customer gave us a report / tip when they found out an unusual activity during their Xbox live game. Once they sent a report, we investigate the case immediately since MS does not support modified Xbox hardware. This applies to any use of the Xbox console, regardless of whether you play standard "offline" game titles or play on Xbox Live. Xbox Support cannot help you set up or use a system that you have modified. If you modify your system, you void your warranty. MS will not repair a modified console.
Any mod chip that contains a copy of MS's code is illegal (Piracy). While reverse engineering of game consoles is not a new phenomenon, neither is the fact that we will vigorously prosecute to the fullest extent of the law anyone who tries to modify the Xbox for the purpose of violating MS's partners' intellectual property or that of MS's. MS maintains an evolving high-level security system to protect its intellectual property and we see this incident as posing no threat to our customers or to our partners."
Not much help, as expected. But hey, it was worth a shot, i guess. -BjTheClown