Well, In case anyone is interested. here is my theory on this whole thing.
Depending on the security that is builit into the microsoft emulator, This may or may not be a possibility, but well worth a shot IMO..
First of all, A few years back. There was this game called Phantasy Star Online. Aka - PSO. This was originally an online MMO for the dreamcast. Then ported to the PC which is only available in japan, and it was supposed to be released in the USA but never was. AFAIK.
In anycase, later on, it was re-designed for the gamecube and the Xbox, now I beleive they have had a couple more version come out since then. They were having a little trouble hacking it for the GC, but were able to do it by hacking the PSO-GC server-client encryption scheme. Bla bla bla. The reason this worked, is because In PSO, there were notoriously a lot of cheaters, and sega was trying to prevent this. So inside of PSO they created a function that allowed the game to download an updated version of the game's excutable, which was executed locally to check for cheats. Hackers later exploited this and were able to upload their own programs into the gamecube and Presto!
Google: PSOload and PSUL.
They were server emulators that would trick the GC into thinking it was in contact with a real sega server, which could only be accomplished by knowing the encyption algorithm that PSOGC uses. Which is actually available online these days.
Since the Xbox uses the same encyption algorithm as the GC does, this opens a very big door for us. This may not lead to hacking the 360, but it may allow us to run our own code locally, 'inside' of PSO on our 360's. We would be in 'user' mode as PSP hackers would call it. Doesn't necesarrily allow all access to the 360, but enough to consider it hacked. That would be running homebrew, am I wrong?
Comments are more than welcome.
PS: For the People that are too lazy to search: here ya go Click Here
Another thing, There is a 'hosts' file or something inside of computers with windows xp that allows you to make your computer's ip address appear as if it were another... I wish i could remember the file name. its been so long since I did this... Its some sort of .txt file you can edit. I did a lot of packet sniffing with Iris during this time as well.
EDIT: Found it: c:\windows\system32\drivers\etc\hosts
there is no extension... like 127.0.0.1 www.google.com
would make someone think you were google. sorta.