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[dervboy]

ok, firstly i advise you to keep googling, and ask questions about specifics if you are not sure.
in brief, the version of xbox you need is x.4532 and you can view the version of your xbox in the system settings menu, or there abouts.
if you currently play on xbox live, then your version will be 7xxx which is not exploitable. also, if you have ever put a hard drive in your xbox from a console on live, then this will try to update your xbox, and lastly if your console is a warranty repair then this is not exploitable full stop (so i hear)

so if your xbox has never been warrantied, but is updated to 7xxx then you still have a chance. you need to buy a mod chip, and solder some very tiny wires to be able to downgrade your dashboard to the exploitable version. this is what i have done.

ideally you want a friendly linux installed, like ubuntu but im having some difficulty on that since ubuntu 9.0x is out they have removed 7.04 and 7.10 which is what we need to install to hard disk.

if you dont backup your xbox hard disk then no, you will not be able to use it in a 360 anymore since you will remove the partition information.

since you will be using a mod chip and soldering, this will invalidate any warranty you had, and since the dashboard will be downgraded you will not be able to play on live anymore. what will happen when you try is that m$ will try to get you to update your box which you dont want.

also, since you also need to remove a resistor which is to do with encryption during the update process, you will need to either re-solder this back on, and then update only if you want to put your xbox back to the way it was before.

i suggest you buy a 3RLOD box, fix it, and go from there. this is my path. just be careful what you buy and who you buy from.