To get where you are going you will need a mod chip. You could also flash the TSOP if you don't have a version 1.6.
Soft mods are programmed to load from the E:\Dashboard folder, usually. Why do you have a problem with that?
In XBMC you can set the color of the front LED, so that shouldn't be a problem. You can also set the fan speed.
So, having loaded Krazie's Ndure 1.1.1 is all you need to run the Xbox the way you want it. If can give you the large F drive.
In my opinion, mod chips are great and I am thankful for all the people who put in the R&D into them. They have their place, but since the latest soft mods are as stable as they are, most people don't need them. They have a few advantages over soft mods, but if you follow instructions and back everything up, you can easily get by with a soft mod.