There are 2 ways to get backups/homebrew code to work. Well there are actually 3 ways but only 2 of them are possible for the moment.
One way is to chip, it is the easiest and most often the most reliable one.
Another way is something called Softmod.
There are 3 games that can be used to install a softmod. Splinter Cell, 007 Rouge Agent and Mechwarrior. Only the original versions of the games can be used not any Classic version or similar only the original first releases.
A memory stick is also required. When the games and the hardware is avaible any softmod installer is also required. Preferably Krayzies as it is Live-secure and protected from live-updates too.
Long story short, by loading a hacked savegame that launches a small Linux dist that will install a bios-loader, hacked dashboard and modify some original xbox-dash files, a hacked bios will be loaded into the memory upon boot of the xbox and thus allow backups to be played without a chip.
I have tried both methods and I prefer chipping.
Summary: Your friend is right this time.
