Do i currently need to hack/mod the 360 to run DVD+R/-R DL backups?

the "backup" consists of a .iso and a .dvd file, im new to this whole thing,
and i would rather not open my 360 up. not till next AK PFD comes in again. hopefully its as big as last time. 3200 for being alaskan. ooooh eee.
anyways, if i do end up having to hack my 360, does LIVE know? do they care? do they do anything about it?
or if i dont have to hack it, do they care if im using "backups"?
IF YOU DON'T HAVE AN ANSWER, DON'T CLICK THE ANSWER BUTTON. you're wasting your time as well as mine.