Student faces three years in prison for modifying Xbox 360

"The Cal State Fullerton liberal arts student is accused of installing chips on Xbox 360 consoles that allowed people to run pirated DVDs and other unofficial content.
In a potentially devastating decision, a federal judge ruled last week that Crippen could not claim "fair use" as a defense for modifying a gaming console.
Crippen's attorneys had hoped to claim that installing a mod chip in a gaming console was no different than "jailbreaking" an iPhone, since both devices share many of the same basic functions."

Read the rest here
Note:  If it's his hardware he should be able to do anything he wants with it.  

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