Awhile back, we first broke the news about Windows Phone 7 and the tough protection scheme Microsoft has implemented to prevent piracy. Specifically, private keys (PVKs) which are tied to the hardware and need to server-authenticate. This hurdle would prevent non-approved devices from accessing all LIVE services and severely limit device functionality. Interestingly enough, just weeks later this was confirmed by team DFT, who were attempting to hack WP7 to the aging (but versatile) HTC HD2.

Fast-forward today and it is being claimed (not yet demonstrated) that certain aspects of PVK has been breached. But, like before, they're still far from a viable implementation. Pocketnow has summarized this as follows:

Several different methods are being attempted to bypass the limitation, including the search for a so-called "corporate key," which would essentially be a universal PVK for large-scale activations. Unfortunately, because all devices are security-flashed at the factory, such a key may not even exist. Secondly, overseas developers -- beyond the reach of Microsoft legal, apparently -- are said to be hacking the different bits of the device-side authentication piecemeal, but because of the unusually intricate security measures employed by Redmond, "it doesn't really look good" according to our source.

What does this all mean? In reality, that nothing has changed. While porting portions of the WP7 OS to the HD2 is doable, attempting everything is and will remain very difficult. So difficult in fact, it begs the question if this is worth all the effort. At least here in the U.S., with a new Samsung Focus fetching for $99 without 3rd party sales, WP7 hardware seems cheap enough to negate the value of hacking a broken but new OS onto the HD2.

Source: PocketNow