Full details here: http://skitchin.blogspot.com/2010/05/xbox-360-controller-hack-details.html
Original Post: http://skitchin.blogspot.com/2010/05/xbox-360-controller-hack.html
The mess of tape was a bit of an eye sore so I went ahead and cleaned things up. To start, I got rid of some excess wire and covered the regulator and splices up with white heat-shrink tubing to make it look nice. I decided to use the original back, so I made dummy batteries by putting tape over 2 AA's, which hold the - and + leads in place. A single piece of tape on the back keeps the wires out of the way. New setup should be much more durable.
I should point out that I am using a voltage regulator that is three-tenths of a volt over what two AA cells produce, which seems to be within the threshold of the controller's components. Also know that the controller is still communicating wirelessly, it is simply using USB as a power supply.