My understanding of how it works is:
- the firmware is binary, executable program code.
- it needs to be reverse-engineered, which primarily means "disassembled", changed from binary into so-called assembly-language for the processor it runs on (that would have to be identified to enable disassembly).
- once you have assembly language code, you can try to make sense of it, like where it detects Copy Protection and refuses to continue the recording, or where it detects the Region Code and refuses to continue the playback.
- the hacks would be to "fix" those key points in the code so that they "do it anyway", for example by changing the result of evaluating a test condition so it is always "good" (true or false as the case may be).
- turn the hacked code back into binary executable program code. This might be by "assembling" (this is like compilation) the modified assembly language code again, or more likely it is just done by poking values into the existing binary code, once you know what and where to poke new values.
- install the hacked firmware and hope you didn't just shoot yourself in the foot.