Please note talking all about the console you love is fine. Attempting to hack, exploit or mess with microsoft servers or other sources is criminal and won't be tolerated. So if you are doing illegal things; don't.
I'm guessing this is directed towards me? Currently, nothing illegal has been discussed. There has been no piracy, nor exploitation, nor PNET, nor MS servers. AFAIK, modifying software using open-source, freely developed code is not illegal.
Probably because of this: http://www.assemblergames.com/forums/showthread.php?51309-Xbox-360-people-get-arrested-(finally)