Huang is willing to testify on Crippen's behalf, arguing that installing a mod chip does not in itself constitute a violation of copyright. He points towards a recent U.S. Copyright Office decision to allow the "jailbreaking" of Apple's iDevices as precedent for this; if they can be legally modified to allow third-party applications, so too should game consoles.
Federal prosecutors, however, have called for Huang to be barred from testifying on the grounds it would be "legally irrelevant".
I don't know. Seems pretty damn relevant to me.
Prosecutors Seek to Block Xbox Hacking Pioneer From Mod-Chip Trial [Wired]