no, it won't fry it. chips become mis-aligned while console is on, and the beginning test mode where the box is on, and you wiggle the chip around to get a nice fit. those would fry it.
i don't think this would fry anything if you removed it properly. this is just a test method to see if physically removing the modchip will work. i just don't want to risk my xbox because i've already exchanged it for another box once, and can't do it again, and i have no cash. so, yeah.
anyways, i wonder if anything good can come out of this. wel, then we'd know that it checks the memory, and no communication with the modchip. that's a good thing to be 100% sure about, no?