From Textbook's tutorial:
The Xbox 360 firmware hack may be illegal under the Digital Millennium Copyright Act (United States), the European Union Copyright Directive (Europe), or other copyright laws in your country. Downloading, installing, and using this firmware could potentially be illegal. You are doing so at your own risk.
Copying or downloading games that you have not legally purchased or own is illegal in all countries. This violates not only laws in your own country, but international copyright laws as well. The purpose of the firmware hack is for making backup copies of games that you legally own. Software piracy is illegal, carries a huge penalty if convicted, is ethically wrong, and hurts the game companies. Support the game developers by purchasing the games you play. You wouldn't work for free, would you?
Using this firmware hack and running your backups on Xbox Live violates the Xbox Live Terms of Service agreement that you agreed to when you signed up. Microsoft withholds the right to terminate the Xbox Live service from you for any reason, at any point, with no warning, and no refunds. With hacks on the original Xbox, the Xbox was banned permanently from Xbox Live. The same risk applies to the Xbox 360. Simply put, if you are worried about Xbox Live, do not install this firmware modification - or purchase two Xbox 360 systems. With that said, at this time nobody has been banned for using the firmware hack, but you use it at your own risk and should expect to be banned one day.
Upgrading your Xbox 360 firmware requires you to open your Xbox 360, open your PC, and connect the Xbox 360 DVD-ROM drive to your computer via a SATA cable. This will void your Xbox 360 warranty. There is no way to flash the drive firmware without opening the Xbox 360. Also, this firmware upgrade is not recommended for novices. A technical level of computer knowledge is required, with an understanding of how to configure your PC BIOS, use MS-DOS, or the MS-DOS command prompt, and the use of CD/DVD software. If, after reading through this tutorial, you still do not understand it completely, get an experienced installer to do the job for you.
