
At its most ridiculous, the filter censors the word "hello" because it begins with the banned word "hell."
The filters were discovered by Michael Marsh, a beta user who tried to create a Gay/Straight Alliance club within the service. Marsh contacted Sony on December 11th, before Home went public, but nothing came of it.
For its part, Microsoft employs a filter as well on Xbox Live profiles which bans words such as gay, lesbian and bisexual. However, unlike Sony, words can begin with banned words.