There are three main classes of hack

Minor software fiddling.
Things like installing PIRS DLC (DLC that comes with some game of the year games and can be installed by anybody, quite legitimately, on anything). You can do this with a USB drive. If you get into modding saves and maybe dashes you might run into issues, every other hack that fell into this category (profile sharing and such like) has since been squashed by Microsoft.

DVD mod
Varies a tiny bit depending upon what dash you are on and varies quite a bit depending upon what model of 360 you have.
Also falling into this are ODDE type mods where the DVD drive is intercepted by a not so cheap device and redirected to USB.
With these online is available, you can be banned by at this point we have not seen bans in years but play it like it might happen and if you buy a year of live and it happens tomorrow you will get little sympathy from anybody.
Limitations as far as new games. Some future games might see something odd happen which sees you have to update your DVD mod though this is considered unlikely at this point (it can and did happen at several points but we are drawing towards the end of the 360's lifetime).
You can download them yourself, you will need a special drive (see ihas and related drives as well as BurnerMAX) to burn many newer games though. You are restricted to games made for the region of the xbox or otherwsie region unlocked for your region. Europe is actually pretty good these days as long as you are not a fan of playing every Japanese shmup that comes along and are not a fan of American sports though even there you can get a lot done.

JTAG/RGH/RJTAG mod
This is the good stuff -- it allows USB loading, homebrew (there is not a lot), hard drive loading, region free, modded games, XBLA, DLC and a bit more besides. You are looking at finding someone that knows how to solder and spending a bit on parts for any of this save perhaps JTAG though your machine is probably long past JTAG capable (August 2009 was the update that killed JTAG).
It does not inherently allow copied DVDs but with the other options most people do not care.
It comes at the cost of online, there are some very annoying mods for the RGH stuff that allow you to maintain two kernels and have one for online and one for hacks but most around here would not suggest doing this as it is not easy to maintain a working/safe setup here.

 

Just ask for the installment of an Xkey.

If you want online gameplay, then get an Xkey/DVD mod.
I've written a guide for it as well, to help you decide what you want etc.

 

Yes, every game that is 8.5 GB.
You'll have to use a special burner.

That's why I reccomend the Xkey.
It's a bigger investment but pays off more as you can store ISO's on a harddrive.

 

Otherwise ask if he can retrieve your DVD key for you.
That way you can install the Xkey yourself ;]

 

Yeah... they only ban for huge games, like Halo.
Its fine to play online. I've been doing it for a year now. I usually just disconnect from live when im playing and unreleased game on Xkey.
Everyone says hacked xboxes are not live safe but I'm yet to see one banned for using Xk3y. People who usually come out saying
their Xbox was banned because of Xk3y have pretty much been debunked everytime they come up.

I warn you tho... you will have so many playable games you will get tired of it haha. I have about 30 games on a hard drive and i havent touched it in months. Waiting for GTA V tho.

Xk3y is a great investment. Don't pay someone to instal it for you, its not too hard. Just follow the tutorial videos exactly and everything will run perfect.
Good luck on your choice! But yeah get the dvd key from the guy. Thats all you'll need.

EDit, oh yeah if you decide to get it. Make sure you order some 360 opening kit, don't go using a wrong screwdrivers and stripping the screws. I remembered i vowed i'd never open an xbox because i know i'd eff it up. Its honestly not hard.

 

It's a Slim lol. That thing just looks so sensitive, I'm afraid to touch it.

Thanks and I'm sorry for all the questions, but I'm just so lost in this.

 

I bought it about 2.5 years ago.

 

ok, just one more question
-Do 2 disc games like GTA V represent any kind of limitation?

 

^ that yes.

However, if you get an Xkey you won't need to burn them lol.
Just ABGX them and drag and drop.