It seems you have a lot of reading to do roadie. First, read the tutorial. Understand that this isnt really a softmod by conventional means. It is equivalent to flashing your tsop on the original xbox.
Secondly, understand that this hack only allows you to play non-stamped xbox 360 media - backups of games you own. It does not enable any other features that you may be used to with the original xbox.
You can stream divx, xvid, etc... i believe with some of the programs available for streaming media from your pc to your 360 over your network. You do not need to flash your firmware to enable this.
And, as stated, your 360 is already Live capable, simply plug it into an active internet connection.
Caster.