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Not right off the bat, because it is unsigned. The exploits fix that. Also if your ms dash does not boot with the chip out/off, u need to lock your hdd. As long as it is not locked, you cannot do anything without the chip, at all.
With the exploits, u cannot have the xbl 2.0 dashboard. And like rms2001 said, the modchip is a million times more handy. btw, if u are going to use the pheonix bios loader, for future referance, the boot screen cannot be changed.
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