I don't think they would dare do that.. what if something else gets caugh in the fire.. and what about the smoke damages?
If such code exists in the Box and it can be proven, I can smell a case and a law-suit for one lucky bunny. EDIT: Even the remote possibility of MS trying to control your home appliance, the XBOX, after you have purchased it, would spell a heavy fine and some serious restrictive measures against the company.
Even if that WEREN'T illegal, MS wouldn't dare to do it because it would make consumers hate them. That is, if they have any common sense. And by the way, does anyone have the link to that thread about running foreign demos?
I'll tell you how: 1) Go to xbox.com and click "sign in" in the upper right corner. 2) Click "Register Now" on the left hand side of the login page. 3) When it asks, create a new passport account and be sure to select the country for which you want to browse the marketplace. 4) Once you have registered the new passport account and gamertag, turn on your 360 and recover the gamertag you just made. 5) Once recovered you are able to browse the marketplace for that particular country which you entered for the passport account. Hope this helps.
Decompile Halo 2 some time and take a look at some of the API calls... there's some interesting stuff in there. Mod detection and prevention type stuff....
I'm not sure about mod detection, but preventing you from playing your console, or diminishing its original purchased functionality intentionally is illegal