Only a couple of weeks after Microsoft began banning modified Xbox 360 consoles from Xbox Live service for being in violation of the Terms of Use, the modding community has quickly responded with a new firmware update that apparently "Defeats all current and some future Xbox Live detection attempts."
The new firmware will work on any console that has the TS-H943 DVD drive and will prevent any Xbox Live detection attempts while allowing to play "backup" games; a Hitachi version of the firmware is currently in development.
Previously banned consoles, however, will remain banned as the console ID cannot be faked. Those attempting to use this new firmware to hack their un-banned console should really think twice, as that would probably mean they'll eventually get detected and kicked out of Xbox Live.