xor breaks if process repeated with small changes ... I may well have a go at sometime during the next few years ... I can't prove 2) is unbreakable
So far, you've seemed to assert several times that the modulo algorithm is more secure than XOR - but now you admit you don't know all the security details of either algorithm. Please don't make assertions about security that you can't support, that can be very dangerous. All we're saying here is to err on the side of caution.
As far as I can tell, there is no difference in security between XOR and modulo with one-time pads. If you have solid evidence to the contrary, please present it, otherwise this is not worth continuing.
I also think you're mischaracterizing several of the things I've said.
Anyway, here are some Google and Wikipedia links that have provided a good amount of insight for me:
<code> <a> <b> <big> <blockquote> <br /> <dd> <dl> <dt> <em> <font> <h1> <h2> <h3> <h4> <h5> <h6> <hr /> <i> <li> <nbsp> <ol> <p> <small> <strike> <strong> <sub> <sup> <table> <td> <th> <tr> <tt> <u> <ul>