I got a 360 a few weeks ago and just had a friend mod it. An expensive chip is not necessary. $30-$50 for a firmware flash. A cheap firmware flash does the same thing. There are two types of drives for the 360. A tashiba/samsung and a hitachi/LG. The T/S drives are far ahead in firmware releases and read burnt media better than H/LG. A few weeks ago the H/LG got a new firmware released that is supposed to be really good. Media that didn't work on the H/LG is now working. Plus the H/LG drives can be seen in windows so flashing is to be very easy.
The drive that came in mine was the T/S. This was a newer drive (manufacturing date July 24/06) that has some epoxy on the circut board inside the dvd drive. This is to prevent firmware flashing. It can be overcome by soldering some jumper wires or something like that. Don't know the detail as my friend did it for me.
The media used are DVD+R DL. Verbatim is supposed to be the best brand. I burned a bunch of games and thay all work. You can't rip games to the HD. There is no OS like EvoX for the 360. Besides, the HD only reads 12GB free space from the 20GB drive.
With regards to Live, I have not been on Live yet but my friends who all have modded 360's with H/LG drives have been on Live ever since the mod came out and have never been banned. Not to say it won't happen. They say that because MS is loosing money on every console, they make it up with Live subscriptions. Don't know if this is true or not.
If you have an older console it is an easy firmware flash. If it is an newer console then it might be more expensive to do.
All info can be found on
Xbox-Scene
Cheers. Happy gaming. Don't forget to buy the original.
