That question is far from dumb, it can actually be quite hard if you never did it. On the bright side, the x.b.i.t is the easiett chip to flash that i've seen.
Basically, you connect the chip to your pc through a USB cable. They have software on their website to flash the chip. Well, you load up the bios, and flash. You can have up to 6 different ones, which u will prbably only need 1 lol. Anyways, when you flash the chiup your xbox has to be off, actually, flash the chip before you even install it. It doesn't have to be installed to flash.
http://www.dms3.com/xswmanual.htm