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Yeah, it pretty much is not-quite-so-legal to modify your console system. I wouldn't call it illegal since it's not like anything can be done unless someone's getting paid for the modification at least.
It's the name of a Samurai weapon. The Naginata is basically a long rod with a curved blade at the tip that is something like two feet long. It's a pretty wicked spear :D Here's more info, actually. http://en.wikipedia.org/wiki/Naginata