Yes the xbox should come with a CD/DVD Drive. What they might mean is that you have to download and burn a hacked BIOS onto a CD/DVD to load it onto your chip. The chips come with an unhacked BIOS which is the only way they can legally sell you the chip. You have to go and get a hacked M$ BIOS to make it a modded xbox. Do a little research on #xbins and MIRC to find out how to get the right BIOS to get you started.
It would be a good idea to burn a CD-R, DVD+R and DVD-R with some movies and or music to make sure your particular xbox can read it before trying to load a BIOS from the media. That's because different versions of drives (Thompson, Phillips, and Samsung) prefer different types of media with CD-R being the least compatable and DVD-ROM being universally compatable.
You can also FTP the BIOS from your PC to the xbox, but that tends to be even more trouble for noobs.
After you flash a new BIOS onto the chip, you'll need to install a new dashboard and applications. Do a web search for Slayer's Installer or Auto Installer Deluxe.
