I've modded two x-box systems.
I helped a friend install his mod chip, install a new dashboard, and slap in a bigger hard drive.
I've installed a "solder-less" chip in mine and installed a new dashboard. I'm fixing to install the bigger hard drive.
My friend didn't bother "locking" his drive (it's a security feature for x-box live) so he can't play his online, but I plan to lock mine so when I jump on x-box live there will be no problems.
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