Some readers might be interested in this SecurityFocus BugTraq disclosing a vulnerability in the Xbox360 Hypervisor, enabling the execution of arbitrary code. It’s quite an interesting read and it’s an elegantly executed hack. It is also a great example of how difficult it is to build a secure system, even with powerful techniques in place such as a Hypervisor and hardware encrypted/hashed RAM. To wit, this vulnerability does not lessen the noteworthy accomplishment of the Xbox360 security architects; they tackled a very difficult problem and executed their solution almost flawlessly.
Thanks to the little birdies outside my window who told me about this link. :-)