The Firmware hack is only out for the xbox currently. The x360 version is not yet released
But, if you plan on using xbox live it is pretty much pointless as it will be patched as fast as it's released. Not only that, but your console will probably be banned.
Do you know how MS has those media flags for the xbe's that state what kind of media the game can run off of? Well, it is a play off of that. The firmware bypasses the media check. Basically, everything you insert into the drive is read as an official xbox360 game disk.
However, the rest of the xbox securities are still there. So, it will still check against signed xbe's as well. This means that it is only good to play backups, nothing else. Not only that, but any kind of alteration to the disk data will pretty much distort the signature. Because of this, you have to copy the entire disk, even the null sectors.
You need to do a hotswap with your PC dvd-drive. You need to copy the entire x360 disk and burn the image to a DL-DVD disk. I would really rather wait for a chip.