Flashing the disc drive on an XBox 360 and putting new firmware on it so that it can read burned discs is the most challenging and most important part of modding your console. It will allow you to play burned copies of any game and load all sorts of nefarious software onto your hard drive. This video will show you how to do it if your XBox 360 has the Liteon DG-16D2S drive used in many of the consoles.
You will need the following:
Connectivity Kit 3
CK3 Tool v1.2.4
Jungleflasher v0.1.55 beta
All of that software and more can be downloaded at the creator's site here.