It depends what you mean
Yes you will have to update the loader/360 firmware (usual note to check to make sure you are passed the point where JTAG hacking becomes an impossibility: https://docs.google.com/View?id=dnfmv5h_186pp2zddm ) but the discs themselves will take care of that assuming you do not do anything silly like wave patching (even for offline do not do wave patching unless you never share a game with a friend).
As for the hacked dvd firmware possibly- you have three main options
Earlier firmwares included a security measure that was accidentally tripped by the newer layouts of the 360 games.
1) As of 1.6 there was a special disc bundled as an iso you could burn to allow you to bypass the inbuilt security.
2) Around new years 2009-2010 there was a hack to the hacked firmware that became known as 1.6NS
http://www.xboxhacker.org/index.php?topic=13383.0
This acts like the disc was used and as such is the best firmware for offline play.
3) Part of the shift to LT was the removal of the security measures (and with it the issues with false positives for the inbuilt security) and with it the need to upgrade the firmware. The only reason for not liking it for offline play is that it requires you to use splitvid- some older discs might have to be reburned and while newer ones should come with it already done (one of the scene rules is that the isos should work with the latest version of ixtreme) you still have to check.
Anything else (unless you have a really old drive and hacked firmware or are using a hitachi drive which the hacked firmware for was not troubled by all this but let us not go there) and you will be upgrading, similarly 1) gets to be very annoying so you will probably be upgrading then too.
Good news is aside from LT the hacked firmwares will give up their keys if you so much as ask nicely so no special measures (probes, soldering and the like) to get the keys to build a new firmware.
Yes you will have to update the loader/360 firmware (usual note to check to make sure you are passed the point where JTAG hacking becomes an impossibility: https://docs.google.com/View?id=dnfmv5h_186pp2zddm ) but the discs themselves will take care of that assuming you do not do anything silly like wave patching (even for offline do not do wave patching unless you never share a game with a friend).
As for the hacked dvd firmware possibly- you have three main options
Earlier firmwares included a security measure that was accidentally tripped by the newer layouts of the 360 games.
1) As of 1.6 there was a special disc bundled as an iso you could burn to allow you to bypass the inbuilt security.
2) Around new years 2009-2010 there was a hack to the hacked firmware that became known as 1.6NS
http://www.xboxhacker.org/index.php?topic=13383.0
This acts like the disc was used and as such is the best firmware for offline play.
3) Part of the shift to LT was the removal of the security measures (and with it the issues with false positives for the inbuilt security) and with it the need to upgrade the firmware. The only reason for not liking it for offline play is that it requires you to use splitvid- some older discs might have to be reburned and while newer ones should come with it already done (one of the scene rules is that the isos should work with the latest version of ixtreme) you still have to check.
Anything else (unless you have a really old drive and hacked firmware or are using a hitachi drive which the hacked firmware for was not troubled by all this but let us not go there) and you will be upgrading, similarly 1) gets to be very annoying so you will probably be upgrading then too.
Good news is aside from LT the hacked firmwares will give up their keys if you so much as ask nicely so no special measures (probes, soldering and the like) to get the keys to build a new firmware.