Don't play on Xbox LIVE much, do you? If you play Halo 2 on XBL a lot you get thick skin, because you hear everything there. All kinds of swears and little Halo kiddies spouting their mouths about the smallest little thing. Honestly, just ignore them, because 99.999% of the time they are ignorant pricks who don't have the guts or ability to back up what they're saying. Trust me, the really dangerous sort are the ones who don't spout, until they snap.
Look, if he had said, "I could seriously mess you up. Right now, I'm gonna pop the tray out, just to show you," and then the game tray actually DID pop out, you'd have a problem. Basically, if they could prove they could hack you, by making the tray pop out, by signing you out of Xbox LIVE, or something like that, then you should be worried. But then again if they could do that, you'd have actionable evidence to bring to Micro$oft, who would probably ban them from Xbox LIVE. And if they actually went for your credit cards, you'd be OK because credit cards are among the safest things in the world. Just call your credit card company (it's on the back of the card) and they'll put your money back. If you really wanted to, you could probably sue them for hacking into your credit card; but that's only if you have solid evidence that it was them who hacked the card (hacking into a bank's financial database is a federal offense, I think).
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