Yep - you've got it right. Choose your modchip carefully though. What you have in mind is top of the line second best and that second best is going to expand the capabilities of your PS2 by at least 100%.

If you can get hold of a Messiah, that goes up to 250-300%% because you can boot import originals and you don't need to do a swap for anything.

Any advice you need. come to the Forum.