I'm not going to post links, or be able to give references, as BC said, you should search yourself.
However, i will give you some starting ground for your questions.
1. What's the difference between firmware modding the DVD drive and chip modding the 360? I've been to Divineo and seen various chips available, but want to make sure I actually need one to play backups on my unit.Firmware modding flashes the internal chips on the DVD drive, allowing them to play backup media. Modchips present an alternative chip, that overrides the current firmware with one on the modchip. At the moment, chips do the same as, if not less than firmware flashing, and the general opinion around here is that they're not worth it.
2. When I decide how to mod my 360 (assuming that you can do either/or with modchip/firmware) which one is recommended? I don't have soldering experience, but can get someone to do so if necessary.See above question for general opinion. You will need to solder for a chip, and not for a flash. Search for install diagrams.
3. I've found a there are a couple of drives installed in the 360, LG/Hitachis, and Samsungs. Are both moddable, either through modchips or firmware updates?Yes, they are both moddable (with flashes), and i don't know about chips. I may be wrong here, but i'm pretty sure.
4. I'd buy my 360 online, probably through a site like amazon. Is there a way to know what drive is coming with my unit, or could there be a site out there (for US) that I can actually choose which DVD unit I can purchase?Nope, no way to tell from the box, so no normal sellers would have to open the box and check the drive to find out. And i don't know any retailers who would do this for you. Your best bet is the Xbox Scene BST (most sellers will tell you which drive their boxes have), or ebay (you can ask the seller, as the packaging will already be opened).
5. In the event of a firmware mod, I've seen that I can either take out the DVD unit and install in a desktop pc, or install a chip to do the modding via USB. I would imagine that since the USB option is being offered, it's because the modding of the firmware would be quite often, or is it just a one shot deal and more a way to do the modding simply by connecting a laptop via USB?Well, the flashes at the moment will allow you to play backups. There isn't much else that can really be added in terms of functionality except maybe user friendliness with the flashing process. So you can reflash as often as you like, but you risk bricking the drive (there is always a chance they can go badly), and it will likely not add any extra functionality. And yes you can connect it via usb. Team Xecutor make an adapter, and you can use other generic adaptors if you like.
EDIT - Oh, and i would just like to say that these are answers from someone who reads a lot on here, and knows a bit, but i have never modded a drive, as i don't care about pirated game disks, i want homebrew and backups on HDD. So take my advice with a pinch of salt i guess. Happy modding!
EDIT 2 - This post may actualy be more suited to a different sub forum, i don't know. This is the one for backup talk, so i guess flashing talk also goes in there? Not sure.
http://forums.xbox-scene.com/index.php?showforum=135Have a read anyway. Look at the stickeys, the guides, google etc.
This post has been edited by Jelly4000: Oct 17 2006, 08:30 PM