Though this desevered it's own thread.
here is the solution, needs some fiddling not for he noob at present.
http://www.xboxhacker.net/index.php?topic=12759.20
It basically is as follows, the Updated "banned file" it sends from live, updates the secdata in nand, it dosn't overwrite the original but writes the new file at a differnt place and tells the os new address for it, we edit the address it tells the os to look for at the old place.
This works encrypted because we are moving one encrypted block so no decrypting needed.
Ted
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