Check out the pinned tutorials at the top of the main page. The NooB guide to everything seems like the one to check out.
The chips generally are lined up with points on the board and screwed in place. Unless you drag the pins on the chip across your Xbox mobo, you cannot hurt your xbox. Check out the solderless options and install guides on www.xbox-scene.com. Im sure it will give you a btter feel for the process.