According to this WhatTheyPlay story, Gears of War 2 is to ship with filters for both violence and swearing.
From the piece:
Gears of War 2 will be released on November 7, but has already received an “M” rating from the ESRB, for “Blood and Gore,” “Intense Violence,” and “Strong Language.” For many families, that may immediately eliminate it as a possibility as a holiday gift. However, a new point of negotiation will become a factor this year; Gears of War 2 includes filters for both the violence, and the language. Microsoft informs us that the violence filter “turns the blood into sparks,” while the language filter “takes out all the swear words.”
Commendable. More through the link.