Is it illegal in Australia to mod an Xbox?

Don't talk to me about modifying a toaster. Please refer to relevant copyright / intellectual property law. I am aware of the Sony case in the High Court - I am not convinced that this case means it is okay for Xboxes because they are built differently.

Again, don't just say "I'm allowed to mod because I bought it and I can do what I want with it."

If relevant, please make reference to the Microsoft License Agreement, which all Xbox users allegedly agreed to.

Pretty much, what I want to do is turn my Xbox into a jukebox. I want to rip my CD collection onto it (copyright laws in Australia will be amended soon to make format shifting permissible). However, in order to fit my collection on there, I need to change the size of the harddrive. I understand the only way to do it is to add a modchip to allow the Xbox to recognise the new drive.

I do not want to play games on it, pirated, legit or anything.

If you are asking as far as putting a mod chip so that you can play games on your xbox then yes. It is illegal world wide.

Can you still do it. Well if you have someone that is willing to then go ahead. I was stationed in Korea and they actually had shops that you could take you system in to get modified.

The mod you want to do make no attempt to defeat anti piracy programming or steal games....so yes you can do it!