I answered your questions/doubts, i told you to ask the seller and collect as much info as you can from him, if you dont get me what i need to know i can't help you.
Have you been online?
Is the xbox banned?
LT doen't require any chip to be installed, you need to connect your dvd drive to your pc and you need the tools and the program to do that. But i cant point you to any direction if you dont get what i need.
Next time buying ask questions before buy anything please.
its recommended to flash your xbox to stock before updating your dashboard cause it may lead you to getting banned online but if you are already banned online or dont care about online there are no risk.