1. Your console needs to be at a version less than 2.0.8000 for JTAGing to work. If yours is newer, you can't venture any further.
2. Yes, JTAGable consoles can play games straight from the HDD, whether it be the one in the caddy on top of the console or via an external USB. You'll still get achievements.
3 & 4 - If you're looking to use a dedicated offline 360, you don't need to go through the worry of using an Xbox DVD drive to rip them. A Kreon flashed DVD drive will suffice.
Check the guides and tutorials for more information. Better still, google
Thanks Martinchris for the reply. I have a 20xxxxx 7xxxx xbox with a liteon 74850C disk drive.
I made it and im at the part where i 'dump' the key. I downloaded iPrep.exe and somereason i cant update it...it says "error during upgrade, the remote server returned an error: 404 not found." I think that means servers are down. and get to the "iPrep 11.6" screen
On left i cant use the "Lite-on 74850C iXtreme" i probley need to DL that, but do i need to do the key dump?