im sure it's ok for canada to mod (i live in canada too), i have a modded xbox for two years now, and anytime my ps2'll be modded (waiting for a modchip to arrive...).
ignore the people who "hassled" you, dont worry.
edit: just found this.
"Are modchips legal?
In Canada, Modchips are legal to purchase, own, and have installed in your console. It's your console... do with it as you please. What is illegal is the making of backup copies of titles for which you do not own the original. Fortunately, here in Canada and in the US, we may, by law, make a backup of software we legally own, for archival purposes. For you to have the right to make backups, you must have bought the original game. CMS does not condone the illegal copying and/or distribution of software for the games consoles or any other format.
Interestingly, though Sony and Microsoft know that we are allowed this right, they have designed their consoles in such a way as to make it impossible for law-abiding citizens to play their legally owned backups on their own systems."
PS2|v7 NTSC|Crystal Chip 2.0 Pro
XBOX|v1.1 NTSC|Xecuter3|200GB Maxtor HDD|XBMC
Gamcube|Not Yet Modded