A friend of mine has a couple of modded xbox's and has been trying to talk me into doing mine. I am finally taking the plunge this week.
Getting my chip from http://www.divineo.com/cgi-bin/div-us/search.html .
But what really excites me is what i can do with the modded xbox. I currently have one of my friends mods. It is a blast to mess around with it. But what makes it so fantastic is the included software of xbox media center. http://www.xboxmediacenter.de/ This program is really incredible. You can listen to over 5000+ (yes that many) radio stations. You can view all the newest movie trailers. You can add all of your photo's from your digital camera to the hard drive. You can hook up to XLink kai for gaming fun (without ever logging into XBox Live)
The chip also makes your Xbox into a region free DVD player, with no need to buy the DVD remote control that all normal xbox users have to do in order to watch DVD's. There is so much more its mind boggling.
Oh yeah one other thing I found great. When playing different radio stations, I was able to listen to all of them in DD 5.1. I was really shocked at the clarity, and how incredibly well it sounded.
Glad to see there are people out there dedicated to this type of thing. Looking forward to some more xbox fun.