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LIVE and Updates ...
Can you go on LIVE with this hack?
Well the firmware isn't released, so noone can try, but I'd guess it would work yes. The Xbox 360 itself is fully in 'normal state', nothing is modified to the Xbox 360 itself, it just gets 'wrong' info from the DVD drive. Of course if you start modifying non-signed files (like textures, ini files, ...) in order to cheat on LIVE or so MS could easily check for that.
Can Microsoft stop this firmware hack with forced LIVE updates?
They could probably try detect a basic modified DVD firmware, but anything the Xbox 360 asks to the DVD drive goes via the DVD firmware, and if the firmware is 'open' in the hands of the hackers the firmware can probably each time be modified again to give the reply that the console expects. Microsoft could maybe do more with a HW security update ... but I'll let them analyse that.
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