That's an interesting theory jimmsta. If they are, then perhaps there could be an exploit there. Well, maybe not, but it could be something. I wonder if anyone's tried replacing the Xbox's DVD-ROM drive with one not designed for the Xbox without having a modded box. Perhaps that could provide some insight to that.
Finally, in regards to reading the XDiscs in raw mode, could it be done using a program designed to recover data from a corrupted hard drive (such as OnTrack or something). I recently lost a hard drive and it was able to recover some of my files. Perhaps, with either a firmware or software hack, it may be possible to either fool the program into thinking that the PC DVD-ROM drive is actually a HDD, or to get the software to read the raw data from the DVD drive.
I'm relatively new to the scene (in fact, this is my first post). I modded my box early this year. In that time, I've learned a lot about the Xbox by reading about it here as well as other sites (specifically: Xbox Linux). I don't claim to be an expert, nor do I wish to try. I'm merely an engineering student who loves his Xbox, and the scene that helped him so much over the past several months. I've been wanting to give something back, but all I know how to program is dumbass text based Win32 console apps for PC as well as a little 80x86 assembly.
A thought occurs: I'm not sure what you mean by the media flags, but what if you could use some program or other tool to see what the registers inside of the CPU say (specifically, the registers that have flags such as how to boot). That or boot flags from the kernel. It's been a while since I read the stuff on Xbox Linux, but, if I remember correctly, there's a set of flags to boot the xbox into different modes (the example they use is that they had to replace the hard drive with a new one without having to replace the EEPROM; they use a special xbe to set a certain flag somewhere so that it ignores the status of the HDD). Perhaps a flag there (perhaps some sort of debug flag or something) could be used to ignore whether or not the xbe is properly signed. Maybe compare a standard Xbox to a XDK Xbox. I don't know though. Perhaps all of this has already been tried. There's also a good chance that I have no clue wtf I'm talking about (more than likely). I'm gonna look a little more into the hardware inside of the Xbox (read about it on Xbox Linux's documentation), and combine that with what I learn in my computer architecture class and hope I come up with something a little bit more coherent next time. If anyone wants to, send me an IM over AIM at omega71122. Peace all.
You know what, most of this makes sense to me, but it is after all 2:30 AM. Perhaps this could spark further discussion (or confusion on the part of the noobs). Just kidding (I too am a noob)...
PS- Sorry about this being so long. Once I get going, then the brain just won't stop.