I need Help BADLY

ok. My friend gave my his modded xbox to me like 3 weeks ago. i was so excited. But the only reason he gave it to me was because it would occasionaly get wrecked. I got a problem with the xbox...read below

The xbox he gave me is modded. Whenever i turn on the xbox, the xbox symbol is BLUE instead of the usual green and at the top left corner it writes "EVO X". Whenever i try to turn on the xbox, this wierd clicking noise comes up and keeps making the noise until this "your xbox needs service, please call customer service" and the number 7 comes up at the top left corner of the screen. I have read on these forums its error 7 which is HDD timeout. Does this mean i need to purchase a brand new harddrive or something? I really want to play xbox...i even bought halo, halo 2 and fable:the lost chapters today but i cant play them. Can anyone help me?What is this EVO X thing i have and keep hearing about and yes, my xbox is chipped because the xbox symbol is blue. Also, what is FTP?i keep hearing about it on these forums in conjuction with that EVO X thing. Seeming i got evo x, does it mean i can FTP games onto my hard drive?

Thanks, help will be much appreicated.