Anyone think that the breakthrough will come due to the similar file structure, or the emulation? I suppose one could rip a game, and then make a custom patch to make the 360 think the game rip was an xbox game. Of course once loaded, the xbox shell would be used to load the 360 game. All theoretical of course, and just some babbling.
As the emulator is the most obvious line of attack, I think it's best to look elswhere. If you think about it, if you buffer overflow the emulator, all you've really done is crashed the "virtual machine" (for lack of a better word) and the system reboots as a 360. I think the easiest line of attack is the bios upgrade over the net. I have a feeling that there will be some security issues tied to Final Fantasy XI, i would think you could piggyback a bios update that way. Unfortunately if the bios goes corupt, there's a backup stored on a chip that would get flashed instead. It might just be easiest to replace the bios on that chip then corupt the original so the modified backup is flashed. In all cases you would have to crack the encryption, as the hypervisor would throw a fit if the code isn't signed. Then again, this is one of those topics i shouldn't be talking about.
You've not said anything that's not publically available...yet ;-) I would have thought it'd be analogous to the DS situation - while all the GBA homebrew stunts still work, the difficult bit was getting it to boot from a GBA cart while still thinking it was a DS. Likewise making stuff run in the virtual machine is unlikely to give you access to the raw 360 power, but then what do I know Stone
What makes you think that if you crasah the virtual machine than it will stop and use the physical one? I am not trying to be critical, just trying to gain some knowlege on the subject. Are you effectively crashing the virtual machine every time you put in a 360 game?
Are you talking about cracking the file system in order to copy game data, as well as use that info to format games to play on the 360? I think it's all a matter of decrypting it all.