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You can do it by modding your xbox 360. But it is very dangerous as virus can be transmitted through it.
Yes
You cannot use a external hard drive on a Xbox 360 console without modding or formatting the hard drive to work on the console. I would not recommend doing this but if you are wanting to do this anyways, there are many tutorials on youtube.
Of course it will do nothing to the actual disk but, it will tag your xbox and any illegal molding like making yourself better etc then you may be instantly banned for ever on that xbox which means yes you will have to get another xbox that is not banned.
xbox 360.The Xbox 360 is the best as it can run games for both the Xbox and the Xbox 360.