You misunderstand. I was saying that, as far as I know, there is no way to remove the nicknames at all. With or without modding.
On the subject of modding though, you
really should mod your Xbox. It's just the smart thing to do. Leaving an Xbox stock is a very bad idea because 1) HDD locking renders the entire console unusable when the HDD fails, and 2) you should
never play Xbox games via the discs because the Xbox DVD drives have extremely high failure rates these days (dead ones are largely becoming more common than working ones).
With a modded system you can bypass the HDD locking issue by either entirely removing the need for locking, or by at least nulling your HDD key, so that even when locked, the Xbox can still be easily recovered. A modded system also allows you to play games from the HDD, so that you no longer have to keep wearing out your aging DVD drive. Playing from the HDD also provides faster load times and it's just much more convenient to have all of your games loaded to the HDD so you don't need to get up and swap discs. When you want to switch games, just exit to the dashboard and launch another game.
Not to mention all the other benefits you get such as transferring saves, emulation, disabling the region lock (
so that you can play DOA3.1!), game mods (
like DOA3++!) and access to all of the old
Xbox Live DLC for all games. Modding an Xbox is
braindead easy too. There's no good reason
not to do it.
And lastly, the obligatory mention of the
clock capacitor. This isn't related to modding, but whether your Xbox is modded or not, get this thing out of your Xbox before it destroys the motherboard (
unless you have a 1.6).