I want to attach my camera, and have a picture of myself as my gamer picture, do you guys know if Xbox will trip over this, or ban you in the case of "modding" ?
Are you using the exact tools they give you to change your gamer picture, or are you messing with coding, I.e. using an outside program to "mod" the picture. Kind of an obvious amswer to this question, if you're modding... Then you're modding. Microsoft may or may not ban you for it, it would all come down to if someone noticed or not, or if they have fail safes programmed into to check for this.
If there is such an option, it would likely be limited to the Xbox vision camera and the Kinect, not a personal camera.
Not likely. I use a cheap usb keyboard instead of buying one of those tiny overpriced things that plugs into your controller. The number of things that work just because its easier to use existing code is surprising. Since I haven't seen any I sure it's not possible to do without modding, but with mods almost anything is possible including legit porn on your fileshare.
Yup if you have an Xbox live vision camera you can indeed change your gamer picture to a snapshot of yourself. However, only your friends see it. People not on your friends list see your separate picture.