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Reading the ULTIMATE STICKY would've been a good start.. I suggest you do that..
Modchips all have pretty much the same function. To boot YOUR BACKUP games and some imports off of DVD-R Discs. You can upgrade the hard drive in your xbox and be able to store your backups on it with some tools (programs) available online.
As for chips is all personal preference.. Use the search method on this site to check threads (there are about 5 billion of them) pertaining to what modchips are the most reliable and popular. Again they're all similar but some have extra bells and whistles. Checking google also might help.. DO YOUR HOMEWORK!
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