Xbox modders due infact have the ablity to hack the games, and are. Xbox live has software that prevents all heavily modded xboxs offline. Some will find ways around it. But MS has a group of people that do nothing but find and patch these mods.
Sonic Team boasts that they have people mainting and watching over their servers on the Gamecube version too.
Wonderful job they're doing.
Problem with PSO and Sonic Team in particular is that they don't seem to care about cheating AT ALL. Sure on the Dreamcast they banned people (sometimes without reason), but they were almost always allowed to get back online (even if they had to call and have their serial reset). Point is...as long as you pay them $9.00 a month, they don't care what you do.
It's pretty messed up.
And where the hell are the downloadable quests for Gamecube??!?!? We've been paying for months and we got NOTHING! XBOX PSO just now hit shelves and already they get a downloadable quest?! BS!