Not a bug. Also quite impossible. Unless you mean hex-editing a save game.
It's "possible" to mod a console in an extremely limited fashion. However, doing so requites aftermarket hardware modifications to the console itself. These modifications void the warranty, and in the case of the Xbox, blacklist you from Xbox Live. (Because a mod chip's main use is piracy with editing save games being a secondary best.)
ugghhhh, i hate that i started this convo....but for modding game saves for any console all you need is a transfer cable and a few programs (none of which go on your xbox, but are just there to edit saves) and you wont get blacklisted for editing gamesaves, what you're talking about is JTAGing your xbox. although while not perminantly banning you, you will get banned. modding gamesaves does not hurt the system or tamper with any of its software.but yes it is much more limited than what pc players get. ex: infinite health, infinite ammo,infinite caps,infinite ap,modded guns and clothing, droppable NPCs and sceneray and enimies.....but i digress.
but what i would like to see is a way to dupe items like in oblivion. its something that wouldn't hurt someone who didnt want to do it, and at the same time allow someone who does want to do it. i loved making 10000 watermelons fall ontop of the annoying fan