Most of the time I really don't care, but I just spent three hours going from room to room trying to find a fair fight. Once in a while I'd like to be sure that everyone is on even footing and so on. Is there a way to make a game that will take out people's cheats or whatever? Sorry if it's a dumb question I don't know that much about hacking to know....

Nope.

Where there is coding there is and always shall be hacks. Some are people trying to ruin someone's day because it brings them sick twisted pleasure, some may be working for rival companies (DON'T think this doesn't happen because I know for a fact that money rules the universe), and then some just do it because they think that, even though others have found ways to detect them, if they look better than they really are, others will respect them or some crap. People like that usually either have low self esteem or no self esteem. Don't ask me how that works in their heads, I personally have never hacked a second of my life.

well there are no hacks on xbox.
well there is just one and its for halo reach but i don't think you will ever see it.

um... yeah, suuuuuuuure. I hope that wasn't your selling point for getting the xbox because if so, they GREATLY lied to you.
Just because it is a console does not mean it is any less a computer. There are just as many hacks, just perhaps less people that use them but it is just as possible to make hacks, mod boxes, etc as it is to do the same on a PC.
I mean hell, look at CoD WaW. Hacked so bad on xbox that they stopped supporting fixes for the hacks because it was futile.

There isn't a real way of detecting an aimbot unless your the admin with sightjacker and can ban them. You should probably actually make sure the person you think is cheating actually isn't too, there are alot of good players out there that can destroy some scrubs easily (I use to be pretty good and would be called out for "botting" when I wasn't).