Then lets get a solid answer from Saint. He makes the rules, and it is his site.
I'm really impressed that the above posters have made factual enquiries about modding copyrighted equpment. I know someone very close to me who is employed by the said company.
Shall I ask him for the definitive answer too? I already know the answer.
AFAIK is a load of

.
AFAIK means nothing.
You open a perfectly working piece of equipment to bypass the bios to load other programs not designed by the company who created the system, is
circumventing and is against the law as set by the DMCA. Unless you are a library and want to catalogue outdated softwares for the use in education or a historian, you are breaking the law.
This is something I do not want children to learn, or to read about thinking "its cool to steal". Try explaining this to children after learning the concept and then make the connection that stealing your car is a good idea too. I'm not getting Twilight Zoney here.
Because its that simple guys. Softmodding, Mod chips, pirating games, etc. is
wrong. Not because I'm being a troll or being lame or spoiling your fun as you want to play donkey kong yet again on a system you can easily get working on an old PC.
I'm all for hacking controllers or adding features like vga boxes or converstions to arcade monitors, because it doesn't hurt anyone. And its is in the spirit that this site was created.
If Bill Gates and Microsoft wanted you, the consumer to run such code, he/they would make a provision for it. I'm just totally surprised that full grown adults are finding this concept difficult to grasp.
I know we have MAME and the rom issue is old hat. Big deal. I'm sure you guys own every rom/eprom/pcb that is in your collection. I'm not pointing fingers at that.
I love homebrew, got some on my PSP via the Tiff exploit, and I think its cool, but I am not hacking the PSP to lay ripped ISOs like some others that can run dev hook 3.xxx and gleefully think its cool. I buy my games, and I don't need to hack to play dig dug. I bought Namco Battle Museum and it rocks.
But not something like the Xbox that is very still alive in the marketplace, that still has an attraction to the youngsters who do not have resources to buy games or maybe parents who are not able to afford them, to lead them down this path.
What about the developers who write the games? NAMCO, Nintendo, Sega, Atari? Its because of them we have this hobby, is it fair to them? If you want a media centre get a Xbox 360.
Here I go because nobody wants to listen.....

* I've deleted my Tiff exploit as mentioned by ChadTower, but I still like homebrew. Maybe Sony will make a licensed way to play it someday.