Hi Undertow, you do **not** have to modify the tone arm. Most arms are already set up as balanced sources, even the lowly BSRs, Garrards and Duals of yesteryear.
You do have to jump through some hurdles with the air-bearing straight tracking arms, as they have so many lateral tracking mass problems that the designers usually eliminate the 5th wire that is common to all other arms.
The 5th wire is the ground, and is why the arm needs no mods.
The cartridge outputs are the twisted pair that runs inside the balanced line. The 5th wire, ground, is the shield of the cable, and ties to pin 1 of the XLR. So the shields of the cables are both tied to the same point at the arm end of the cable (ground).
Note that in this hookup scenario, there is no signal on the shield. So the arm itself shields the signal from the cartridge, and once through the bearing system, the interconnect cable takes over the shielding from there.
If the cable passes through a noise source, the noise will be impinged on both plus and minus signals in the same way, and rejected once arriving at the preamp input. In this way noise is reduced. In a single-ended system this noise would be amplified by the phono preamp.