I typed in this:http://www.hackthissite.org/missions/playit/stego/1/NULL and it was a correct URL, is this any thing to do with the hint/challenge?

The guy that hacked the PS3, Geohot, only got in trouble because he distributed a patch over the internet that allowed anyone to do more with the PS3 than Sony wanted. I think they were worried about people playing pirated games. If you hack your 360 in the comfort of your own home and don't flaunt...