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Is there a software-based "swap" method available for PS/2 yet?
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No, and I don't think there will be. The swap trick was great for my Dreamcast since I don't have the time or money to chip.
If you're really looking into putting a mod chip into your PS2 to play actual back-up copies because you don't want to use the game cases, then stop being so lazy and save yourself the time and money. If you want to play "back-ups" then I would buy a pre-chipped PS2 unless you're good at that sort of thing. I know if I tried it my PS2 would die an ugly, ugly death.
As far as the DRE goes, it happens. If you're buying a refurb at gamestop, I think it comes with a 1 year warranty, so you shouldn't have to worry too much. I've had my PS2 for three years or so, no DRE yet.