QUOTE(theoriginalxboxenthusiast @ Oct 13 2010, 12:29 AM)

my uncle says that microsoft keeps the server files backed up on discs, and he said they are likly to sell them on the internet
Really? How does your uncle know this? Does he work for Microsoft? Has he bought some of their old discs and found Xbox Live data hidden on them?
QUOTE(theoriginalxboxenthusiast @ Oct 13 2010, 12:29 AM)

and even congress keeps records of it too.
Keeps records of what, exactly?
QUOTE(theoriginalxboxenthusiast @ Oct 13 2010, 12:29 AM)

has anyone on here been able to create their own xbox dedicated server?
Did you do any reading or thinking before you posted this nonsense? All communication between the Xbox and Live Servers is authenticated and encrypted using a scheme based on Microsoft's private key and a whole pile of complex and secure authentication and encryption protocols.
Do some reading about public key encryption and authentication schemes, and about how Xbox Live is protected, and about the mathematical infeasibility of breaking public key encryption - then you might begin to understand why your question makes no sense.