Question:
 
  What is a mod-chip, and what does it do?
    Answer:
   

With the X-BOX 360 it works a bit different than other mod-chips.
Instead of installing an actual Mod-Chip, the software on the DVD-Rom is changed to a "hacked" version.
There are 2 types, Xtreme and i-Xtreme:

Xtreme:
Works with all X-Box 360 back-up games of the same region or region free, but may be detected on X-Box live

i-Xtreme:
Works only with stealth X-Box 360 back-up games of the same region or region free, and is X-Box Live safe
 
     
 
 
 
 
     
 
 
   
  Question:
      Will a mod-chip damage my console?
 
  Answer:
  The first versions of the X-BOX 360 console is a big bag of nasty problems / design flaws. Overheating, GPU crashes and low quality DVD-Roms are the 3 major problems. The Mod-Chip or Firmware modification will not damage the console, but it will most definitely not cure it from all it's problems. In other words make sure it works properly before having it modified..
 
     
 
 
   
  Question:
      Will the Mod-Chip or DVD Rom firmware change damage the X-BOX 360's Lasers?
  Answer:
  No, The only influence that it may have is the fact that Double Layer DVD+R disks can now be used on the console. This means that bad quality disks can cause damage to the console's laser sooner than normal.
   
       
      Question:
      What is the life span of the Laser?
      Answer:
      That's hard to say since 90% of all the DVD-Roms outlast the motherboards.
       
      Question:
      What are the Motherboard problems?
      Answer:
      The most well know problem is a combination of overheating, low quality PC Boards and plain old cost cutting in manufacturing and assembly. Many people experience blocks or garbage on the screen while playing and a little while later the console flashes 3 red lights (R.R.O.D.), from here an error code menu can be accessed that normally gives the error 0102. This problem was initially claimed by Microsoft not to be as wide spread as most people claim, but recently they have admitted to "an unacceptable amount of brake downs". On later model 360 consoles (those equipped with an HDMI port) one will get the E74 error rather than the R.R.O.D. Consoles manufactured after April 2008 have a much lower failure rate than earlier models.