Xbox 360 - Software Mod or Hardware ModChip?

[rob m]

I juts purchased an Xbox 360 Pro. I would like to mod the unit so that i can play backups on the system. For my PS2 I purchased SwapMagic, a software mod. Is there an equivalent for X360 that is 100% compatible with all games or must i pursue a hardware mod -- what is the best.

Thanks
UPDATE: I live in Ontario Canada.