Installing the bios differs a bit between chips. But lets say you go for the solderless Xenium SP.I.C.E, then you install the chip. Start the xbox, when it has booted you will see the modchip OS. That will give you FTP support so go to settings, set an static IP on both the xbox and the PC. Start a FTP transfer, transfer the bios to e: on the xbox. Restart the xbox, choose "add bios" or whatever the name is and select the bios file from e:. Done...
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So when the chip is installed, has the bios on itself it is time to install a dashboard. I usually recommends SlaYers autoinstaller Deluxe 2.6 and will do this now too..
Get hold of that one, burn it onto a DVD and then simply pop it in and restart the xbox. Use the menusystem on the disc (you will see it) and make a format with reinstall standard HDD. It will set you up with a few emus, Xbox Media Center, a sh*tload of other apps and some other things.
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I can not give you any links to where to get bios's and stuff. They are considered illegal because they are modified xbox bios's. But I would recommend you take a look at
xbox-scene
And look for a tutorial with the names IRC, xbins and how to in it...
If you are good enough to chip a PS1 I am sure you could manage chipping an xbox too. Go find a tutorial and you will see what it takes, then decide from that.