Somebody tell me what is the thinking here that is making some of you be all cautious about the exploit and not the mod chip? Sure MS can detect the exploit. They can chose to kill your system or heck, they could clear out the exploit and turn your HD back into a retail or trash it. Their choice. What makes some of you think they can't do it with a mod chip> I believe MS has already demonstrated their ability to detect a modchip. Anybody seeking a demonstration of this ability can purchase an xbox live kit and sign up for service. You won't be playing long before your xbox is banned. But yet, if you have an unmodded xbox in your house, you can still play xbox live just fine. A mod chip is just as easy to detect as a software exploit. So, if there's a good reason for anyone with sense to like a modchip better than a software exploit, then it ought not be MS's ability to detect and counter because they can do one as easily as the other.
WHY DON'T THEY?
sIMPLE. There are people out there who would crack it in like 20 minutes.. These people won't attempt to hack xbox live however because I'm sure they don't want to deal with the police. So, apparentely for now, MS has chosen to only exercise mod chip detection and denial of gameplay on xbox live - a place where crackers and hackers can't exploit. And even there, they have opted not to touch a single file on your hard drive. They simply ban your xbox which would appear to be a taste of MS's retaliation to all of you who are modded one way or another. It doesn't seem to be vengeful - just a simple access denied.