No I did not. Not even sure what a lock out chip is. I'm just a tired old man who wants to enjoy the occasional NES cart to relive the year 1986. Please don't try to confuse me with your technical jargon. You know too much.
Well, if you don't want to be confused, don't read below...
In order to prevent people from making piles of crappy games for the console (like what happened to the Atari 2600), Nintendo used a lockout system. Basically, a lockout chip sits in the console, and controls the reset pin of the processor. The lockout chip sits there, resetting the processor once per second, looking for a key chip on it's input pins. These input pins are connected directly to some of the pins on the Nintendo's 72 pin cartridge connector - and are the couple pins on the very edge, closest to the ridges that run down the front of the cartridge.
So, inside every cartridge is another lockout chip, configured in "key" mode. When the lockout chip in the Nintendo can communicate with the key chip in the cartridge, it stops resetting the processor and the game plays.
The problem is, this is very sensitive to dirt on the cartridge, and it's made worse by the fact that the pins on the very edge of the connector tend not to make as good a contact - and the edge pins are hardest to clean on the cartridge. So, if anything happens to this communication, the NES sits there resetting once a second - the flashing gray screen/power light. Sometimes you can even manage to get a game that loads the title screen perfectly, but keeps blinking. The program is trying to run, but the lockout chip is resetting the processor.
So, if you disable the lockout chip, it won't continuously reset the processor, making one less thing to go wrong. All that needs to be done is to clip pin 4 on that lockout chip. This is usually tied to 5v in the Nintendo, but contains enough internal pulldown so clipping the pin ties it to logic 0. This works because the same exact lockout chip is used in both the console and the cartridge. The console's chip is configured to be a lock (pin 4 high) and the cartridge chip is configured as a key (pin 4 low). By clipping the pin, and making the console's chip behave as a key, it won't reset the processor.
Third party games got around the lockout chip in a weird way, "zapping" it with a weird negative voltage, causing the chip to lock up and stop resetting the CPU. This is why some third party games have that switch on the back, and why sometimes they blink three or four times before they load. Later versions of the NES included a diode to prevent these from working as well. The only third party to really truly crack the lockout chip was Tengen (Atari), reverse engineering it and making a clone.
-Ian