The running XBox on Linux analogy was actually quite apt. Doing that is just as likely to violate the DMCA (if not more so, because you have to bypass the encryption protection that Microsoft has put in) than hacking this Tivo password.
Just my opinion, but I find a BIG difference in being able to set a few jumpers or change a setting in BIOS to get more cycles from a CPU and hacking an excryption scheme on the xbox, or trying to hack a backdoor password, that someone at TIVO doesn't want people to gain access to, otherwise they wouldn't be strengthening the encryption of the password in each release.
Besides, if I decide to OC my CPU, or hack into an xbox, that is an individual undertaking. It is my decision, my equipment, my consequences.
This TIVO "project" is involving lots of people to brute force attack an encrypted password.
To me there is a big difference. I definitely will not participate. To me it's unethical, if not illegal according to the service agreement and DCMA.
The DC projects up to this point, have either had a scientific, mathmatic, or biological benefit to them, all sponsored, all supported and sanctioned, legal and above board. Even with that, there have been issues with lawmakers.
If TIVO was sponsoring this contest to test their encryption, sure, great go for it. Until then, I don't think it is right to do and promote here as a valid DC project.
What you do as an individual is your choice.