Anyone ever consider the possibility that the chip is fake? Here's a hypothetical question.... EasyBuy2k (for some reason) decides, just a little before its release, that if they can't be the main distributor of the OpenXBox, they won't do it at all. They then ask around for a comparable chip that they could 'premere' and up their sales, and here comes around a team of 'hardware hackers' that got this end-all be-all no-solder modchip that they call the Xodus. EasyBuy2k watches a demonstration of the team putting the chip in a (supposed) unmodded XBox, and watch as the thing plays backups, emulators, a HDD upgrade, and whatnot after the install. They even see the thing get flashed. Unbeknowst to the EasyBuy2k rep watching, however, is that the chip is nothing more than a blinking light with a LPT port on it, and the internal TSOP was flashed before the representation. EasyBuy2k falls for it, and decides to push a crapload of money into these guys pockets for sole distribution rights. What they don't get is this is a huge scam by some con artists in order to get some cash....
The hypothetical situation, while not necessarily true, would make sense. Why would EasyBuy2k want to admit that they were played for a fool, and lost (possibly) a few thousand dollars over it? Maybe they're just trying to figure out what to say to ya'll, as they've taken alot of peoples money for this 'modchip' already.....
Granted, I don't got sources in the 'mod-scene' that give me hints or anything, and this is kind of a wild guess, but it _wouldn't_ be all that illogical, would it?