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[krayzie]

When you flash a bios it means that the full bios that is placed on the chip is replaced by a new one.
A softmod with Phoenix Bios Loader works a little different. Here the bios that gets stored in the xbox memory is replaced with a new one. So that means there is absolutely no need to make any hardware modifications.
Downfalls are that the xbox does always boot up with it's own bios first and then load it's new one from the hd so it's harder to put in a new hd and that the newer xboxes can't load Phoenix anymore (there is released something similar since yesterday though) And the newest xboxes Kernel 5713 don't support the dashboard hacks (audio, font) so they can't be softmodded.