Microsoft's Xbox 360 system security is proving a real challenge for
the hacking community as the most promising potential exploit is
revealed as "useless to the public". An exploited loophole in the DVD
drive firmware had raised interest by letting one hacker run a copied
version of Project Gotham Racing 3.
However, the hack itself is too impractical, and potentially lethal for the 360, to ever be risked by the average console owner. So it looks like Microsft's "core security system" is resisting most hackers' best efforts and could updated very easily, thanks to Xbox Live, if Microsoft feels it is necessary.
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From: LG Miracle Windows Phone 7 handset leaks online