I had my first encounter with modded items this week. First was a rocket launcher of a friend that fired so many projectiles that the game went down to about 5fps. That was before I had heard about mods, so I just thought that it was weird Gearbox let this weapon break the game so badly.
The next day, the same friend came up to me and said he had a shield that would give me money. I was like; "wtf?", but I gave it a go. The trick was to place it in your inventory and sell it to the vendor, over and over again (it would not leave the inventory), for insane amounts of money. Shield also went up to around 20k.
Then I started to worry, as the shield would take all the fun out of the game. So I tried to drop the shield. No luck. Aaaarrrrgh. Even un-equipping did not work. Pretty much the whole party had picked up the item by that point and we were all freaking out. We finally managed to drop the item, log out/in and the item was gone.
I will tell you: there were lots of swearwords involved in the whole process, as was panic. We were all scared that Gearbox would kick us from this (awesome) game.
Weird thing: on the Gearbox forums, people are actively discussing modding the 360 version. It is apparently quite easy. There are even easy to use tools for it!
Tip: if someone in your party says he/she has an AWESOME weapon, thread lightly. Check the stats and use common sense. If it looks too good to be true, it always is.
What are your opinions on modding the 360 version?