first off, i would not recomend manually replacing the fonts and hex-editiing the M$ dash to work, because you are a newb (you haven't even BOUGHT an xbox yet, no offense) and, out of experience, it is really easy to screw up your xbox when you do everything manually. To be safe than sorry, get ltools 1.8: it backs up your entire C drive in case something happens (i.e. you are you let someone screw around with the C drive via FTP), it backs up your eeprom (hard drive password/key that your xbox uses to unlock the HD (another security attempt made by M$) that can be used to unlock your hard drive without your xbox and then can be used in xboxHDM (if you don't know what i'm talking about then READ!) if you fuck up your xbox. So, your ass is safe, and there's virtually no way of making a 6 pound paperweight out of your xbox.
And about the CD-R compatibiltiy in xbox's, only a very few number of them can read CD-R's (it's a fluke, really). In order to make your xbox read CD-R's, you're gonna have to find a Samsung 616-t or -p DVD drive and mod it to xbo specifications, like Millenia said.
If that didn't answer your questions, then READ!!