Yes mate..The only X Box 360 that actually requires a "chip" is the new Elite version.
With this being a Premium 360, it will have either a Samsung or a Toshiba DVD-rom drive, in it !
These require "firmware flashing", this removes the media detect software protection, so you can put a 'backup or copied' game, or dvd film, and it will play, no bother.
The only problem is, if you have a Samsung rom-drive, you're buggered if you wanna play on-line !
Have you got the X Box HDD, with the premium package ?
Stu