As the Hrith points out, it does modify the client.
SEGA encrypted their files, which is a security measure meant to block things like this since it modifies things in the client that aren't supposed to be modified.
Sakai is aware of it, and obviously do not like it since they have even tried to change the encryption a couple of times.
What you probably have heard about was when he said that he was suprised how fast the game was translated. That comment was directed towards the translation project by PSO-World and Bumped.
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