Xbox Live is microsoft online service like PSN.
You can RGH your Xbox, but if you go online with your box you will get banned.
The best option is to solder the jr programmer and coolrunner to the box, so you can copy your games to an external, or internal HDD.
The hard part is to solder the wires, but its not as hard as solder to a Switch, or DSi
You can also install XBLA Games, XBOX Classic Games and Homebrew
If you flash your DVD Drive you can only burn the games to disc, no Homebrew, etc and it is also expensive
if you want to send me your box, I can do it for you and you save yourself the jr programmer. I would have everything with the coolrunner etc.