Will the Xbox be able to read a cd+rw disc or will i need to get dvd+rw discs? ( I've got a mod-chip. )
Yes it should read CDRW as long as they are good and burnt slowly. Maybe the Thomson drive might give you problems but you should be ok.
thompson drives should read cdrw's just fine, but unfortunately thast about all they read, no cd-r's, at least not game cdr's. and it will read dvd-+r/rw