Sorry if this is the wrong spot, I just accidentally stumbled upon these forums and decided to ask a question.

I had the bios on my X-Box V. 1.0 flashed with Evolution X (sorry if I used the wrong terminology). And my X-Box doesn't read CD-RW or DVD, my friend says it is because my X-Box is too old. Is there any way to get it to read CD-RW?

That is dependent on your DVD drive rather than your xbox itself.
What brand do you have? Look here to find out:
http://forums.xbox-scene.com/index.php?showtopic=98909

It is possible that earlier models can just wear out with use. It is possible to purchase a replacement xbox DVD drive, or replace it with a compatible PC version.

It sounds like you probably have an old thompson. Does it still read original disks?

You can look around for recomendations on specific brands of disk. I know that my older thompson drives have all read the compusa branded DVD-R single speed disks with no problem.

Yup it is a Thomson, and by "original disks? Did you mean original X-Box disks, if so then yes, it also reads DVD movies, I just watched Last Samurai last night. I have never tried DVD-R's but CD-RW's don't work.

If you can do dvd-r it should work. if not, try different brands of cd-rw there are some that should work. Read around, there is a list somwhere.