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Sounds like a stupid topic, but didn't Todd say something about this last spring. Does anyone know if it got any legs or was just one of those "good" ideas that never gets to the final product?

All we know is that it is up to M$ and sony to allow this. I more or less gave up hope when Pete Hines told me this:

It's definitely something Todd and Bethesda seem interested in being able to do. They said they would begin to look into the possibility at some point after the game has been released, but there's no guarantee that anything would come of it. Since Sony and Microsoft could take issue with some of the potential 'abuse' that such a feature could bring (someone will surely figure out a way to boot unsigned executables through the mods), and that much of the mods will either require too many things loaded into memory at once or potentially damage the game or console, it's looking unlikely.

The best we can hope for, realistically, is that Bethesda may select individual popular mods from the PC community to be pre-screened and made available for console owners - assuming the mods are no more resource heavy than the vanilla game, and even then it could take many months (if not years) for the real quality mods to start popping up on the PC in the first place.

There is hope however.

It's a know fact you can mod Oblivion and the Fallout games on XBox360. It's a bit tricky to get your head around at first, but once you understand the process it's easy. Unfortunately, once you understand the process, you also have the ability to hack saved games, edit your user profile, give yourself free achievements and so on.

Seeing as that's already going on, it's foreseeable that meeting the players half way (as I described earlier) would be the best logical approach since there would be less need for people to learn how to hack their XBox360 save files just to use the mod content, and potential damage would be under more control than it currently is.