Recently, Microsoft went on an electronic inquisition to try and suss out all the users who had modified their 360s, thus nullifying the Terms of Use.
When found, these modded systems were banned and rendered unusable. However, those pesky hackers have found a way around this spying. A new firmware release from the modding community can make your suped-up Xbox invisible from Microsoft's prying eyes.
Sweet, now you can go on playing the games the way you want to play them. How long until Microsoft brings the hammer down on this? We're gonna go with right...about...now.
Xbox360Fanboy: New Firmware Prevents Modders from Being Banned




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