These discoveries on X360 hacking are really amazing, but I do not agree with TS in the fact that it's impossible to fake the video. It would be as simple as recording a music disc and inserting it in the open X360, while another one has the original game running. The disc in the open Xbox would continue spinning, while it would be playing only music.
To The Specialist: But I think you really got it running, I do not doubt about your hacking skills. And, of course, the decision of not releasing a modified firmware was great (we need unsigned code running, not piracy).