Ok...
Now I see why they kept it secret for so long

Its *very* clever.
If you "flip it around" in your mind, you will see that it is in fact an X-ecutor-type LPC mod. The little "magnets" look in fact to be for want of a better word, pin/nail heads, or say metal cylinders that sit on the solder pads. I'd bet they were pointy, as since solder is soft, once its screw on it could "dig in" to the solder pads on the logic board for better contact.
Good call Dark, good call.
The larger chip is obviously a flash; I'm guessing the socket on the top there is for connecting a Parallel port to it, as opposed to putting pins on the Xbox logic board, then plugging in.
Logically then the switches (as there are two) should be a disable, and a flash on/off.
Yeah, I would have kept this puppy under wraps too, as it will be cloned by the end of the week

I'm gonna get my hands on one of these things to see how well it works; I have a couple of buddies with xboxen that need to come on over and Join In

-K