1) Can I play Xbox Live with the original game and not get banned?
you can go on live and not get banned with just flashing the onboard fw chip2) Where does the chip go once it is installed?
in the dvd drive case3) What are the advantages of this chip and the disadvantages?
ermmm advantages.................. are there any?Disadvantages: ..
Hitachi hard to solder
looks like they were made by a blind person, who was sitting on the toliet
expensive
waste of money at the moment cos MS aint started banning
not compatible with all drives
cant create your own backups (get the SS)
the list goes on .....
4) How can I make a backup of my own game to work with this chip? (Step by step please... Completly clueless about how to make Xbox 360 Backups)
ermmmm ........ u can only dump the raw game image (wxripper way) with a PC-DVDROM... no way to get the SS from it I Hope This Helped!