Couple newb questions
 

Hey I had a few quick questions

1. Does a modchip mess up xblive even if you own the real copy of the game.
2.What does "flashing" a chip mean, and how is it done.

1. You can't go on xbox live with the modchip on. You'd have to get a switch for it so you can turn it off.

2. Some modchips need to be flashed with bios, or can be re-flashed with bios. People hack the xbox bios so the xbox will load unsigned code. It replaces what the xbox uses to boot with hacked ones.
As for flashing them; I've never done it before, so I can't give you details on that.