Modders vs. Microsoft
XBox Live allows users to connect their systems to the Internet and play games online. Apparently some systems have been banned in the recent past due to "hardware modifications" that violate certain agreements. But that hasn't stopped crafty modders from going about their business. In fact, the development of new firmware allows one's XBox 360 to fly under the radar.
"A new firmware version has just been released for all 360s with the TS-H943 DVD drive preventing against any Xbox Live detection attempts and allowing the 360 to play all "backup" game copies. This firmware update ultimately prevents Microsoft from "seeing" the modded 360 thus not allowing them to ban the console from Xbox Live."
Modders - 1, Microsoft - 0. For now...