Will Microsoft nobble the first Xbox 360 mod chip? It seems likely.

The NME-360 chip from Team Underdog allows the XBox to play backups of original games;

The NME-360 autodetects the inserted media. If the inserted media is a backup NME-360 injects the necessary information to the DVD drive enabling it to boot smoothly ahead! If the media is an original game, or anything else, which doesnt require any further action of the NME-360 then it simply falls asleep so there is no need for an external switch whatsoever. This way it can not be detected online when you play an original online game..

Installation requires a little soldering - four wires if your Xbox runs a Samsung DVD drive or five if uses an Hitachi-LG. The home site has full installation details and a list of suppliers. Cost is around A$65. Get in quick before the lawsuits start flying.