Last Friday Disney Pixar released a new game, Car O Rama, which
boasted a new Wave 4 protection. Microsoft’s earlier attempts at
protecting the Xbox 360 against piracy have all failed miserably, and
it seems this one is no exception. Pirates have already created a
temporary fix for the iXtreme 1.6 hack firmware, which involves you
downloading a 3MB “activate.iso” file and burning it to a DVD9 disc.
This disc can then be used to load games with Wave 4 protection,
which currently only include Car O Rama, but will most likely include
otehr games in the future. The official NFO file for the loader states:
One shot boot mode allows you to boot a Wave X or non
stealth game by using the activate.iso disc as a flag. Just insert the
activate disc and the next disc inserted will boot without any strict
checks. This will still utilise full stealth if available. As soon as
that disc is booted the flag is cleared, and you will have to re-insert
the activate disk again to enable one shot boot. As always use with
caution
So it is very possibly that you could be banned if you are using this whilst on Xbox Live.
http://xboxlifestyle.net/2009/10/15/microsoft-hits-back-at-piracy-pirates-break-security-already/