To copy update the firmware and copy games, the dvd drive will need to be hooked up to your PC. The x360 can not run unsigned code, it is only "tricked" into thinking that the disk itself is signed by MS. If you modify the binary data in any way, the binary signatures will become invalid. The complete disk must also be copied, including null sectors. You must burn to a dvd9, it will not fit on a dvd5.
Common files/hardware:
http://forums.xbox-scene.com/index.php?showtopic=546894
Tutorials from X-S:
http://forums.xbox-scene.com/index.php?showtopic=513412
Sorry, I don't know what drive you have. Search that titorial topic for your version and current firmware.
Also, look at this thread here:
http://fileforums.com/showthread.php?t=78240
This drive can have special firmware applied so you do not need to copy with your x360 dvd-rom.