Softmods and modchips do the same thing, they just have different methods of doing it. Softmods patch or replace the microsoft bios that is loaded by software means, and modchips totally bypass the bios and load their own by hardware means.
Whoever flashed the bios on the aladdin chip probably didnt edit the bios he put on it first. Check out
http://forums.xbox-scene.com/index.php?showtopic=345835 on how to reflash it. Most likely you can just use an evox cd to reflash it. You will first need to figure out which aladdin chip it is, and then we can tell you which bios is best to use. Basically you edit the bios to tell it what program to load first, which you can set to xbmc, currently it loads a hacked bios but still goes to the msdash.