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To quote from the official [Register or Login to view links] site:
We amended the Ripper/// GC Specs to v2. Especially we want to set focus to the special disable feature which we implemented in case there will be some on-line games that can detect mod-chips. It's easy as 1-2-3! Switch on the GameCube with lid open to start with Mod-chip enabled. You can close the lid immediately after switching on the GC or you can leave it open, it's on you. Switch the GC on with closed lid to start with disabled the mod-chip. Of course you can not play any back-ups or import games with a disabled mod-chip, but you can rest assured to have no problems whatsoever when playing on-line games!