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1. Transfer your Xbox360 account onto your computer. I will not go into detail on this, because you should know how to already.
2. Open your Xbox360 account in any hex editor. I will be using Hex Workshop.
3. Open the search dialog (ctrl+f).
4. Search for your current service tag as a unicode string.
5. You should find two results, change both of them.
6. Rehash and resign with any program of your choice.
7. Put account back onto your Xbox360.
Another way:
1. Transfer your Xbox360 account onto your computer. I will not go into detail on this, because you should know how to already.
2. Open your Xbox360 account in any hex editor. I will be using Hex Workshop.
3. Open the search dialog (ctrl+h, in Hex Workshop).
4. Type your current service tag into the Find text box, and enter your desired into the Replace textbox. Make sure you have checked the Unicode String box.
5. The hex editor will automatically change your service tag.
6. Rehash and resign with any program of your choice.
7. Put account back onto your Xbox360.
NOTE: You still have to use the default letter, number, number format. Not doing this will result in a random service tag.
What will this let you do?
This will let you use blocked, reserved, etc. service tags. For example, you could make your service tag O00, or P00..