We need a softmodded Xbox for this right? Is there an easy way to do so without a modchip?
I imagine a properly done softmod would make it easier (especially if you want to install DLC, do out of region, have specific updates to ensure specific bugs are available and whatnot, maybe some cheats, level or content hacks as well) but the breakdown I saw sounded like it would work on stock (probably messing with a DNS server like we see on other consoles to block online or go on third party offerings).
Still there are two main approaches.
1) Driveswap. The hard drives (which contain the OS and all that) are locked with a secret key (this is the EEPROM part of discussions) but for a short moment during boot they are not. You can then open the xbox up, wait for this point, rip the cable out, plug it into a PC and write to the drive as per normal. It will then boot up later and you would presumably have stuffed a nice exploit and custom dashboard for it to load into.
2) Save game based softmods. Get a custom modded save onto your xbox (either want an action replay, save from an already modded xbox on a memory card, or take a controller cable and wire it for USB* and hope your collection of 2 gig or less flash drives has one that works) and load the attendant game (hope your DVD drive still works). Originally there were 3 games most used but I think there are a few others today as some people had some fun with them.
Anyway upon trying to load the save the game will crash and go to the softmod installer, follow the on screen instructions.
Depending upon how this Live emulator works you might need to do a few things -- there are few options like virtual EEPROM, shadow C and the ability to still boot into the Microsoft dashboard by pressing eject to power on (which some of the very latest softmods people made in the last few years might skip as everybody thought Live was dead and thus no point in having the option).
*5 wires inside a xbox extension, 4 inside a USB. If the USB is proper colours it will be the same as the xbox. Get a USB extension and solder like coloured wire to like coloured wire leaving the 5th inside the xbox wire alone. Congratulations you can read said 2 gig or less USB drives at USB 1.1 speeds on your xbox after you modded it, fake a memory card for the xbox to copy saves around, if you left the male USB end on use an original xbox controller on PC then you also have that, and I guess have it act as a USB extension still if all the parts are still there.