Im ordering a modchip as we speak
flashing your dvd drive is a much better option in my opinion check out xbox-mod scene as they have some great tutorials on how to do it. with this "soft-mod" you can even get on xbox live still!
Firmware flashing is the best solution since you can still use LIVE. However new modchips allow you to turn them off before going online thereby not allowing you to get banned.
It seems intersting but hard to do. Its risky as well if you have little experience.
The new LITEONDRIVE is flashable now. just had a guy do mine. Mine use to be a benq, xbox went out, sent to repair shop, they sent it back with a new liteon drive. So i bought a benq drive and it arrived right after the firmware update came out. So now i have a flashed liteon and now playing again. You have to solder with liteon drives.
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