If you have a clear conscience that you don't have any pirated material, you don't really even need to consider any of my previous comments.
But I still think, if someone is really "creative" get a job developing, and get paid for it instead of just labeling yourself a "modder" That's what dev kits are for.
This might not apply to everyone in the bracket, but I don't see any advantage in modding an xbox other than the "OMG, I wanna do that too" perception. I never had the need to back up a game in my life.