You have options to backup and restore your ms dash, as well as your softmod, but you may not restore your mod backup if an MS Backup is not present, so some limitations are there to prevent you from messing up your softmod, or losing valuable files of your Xbox.
If you plan to use Xbox Live!, you don't need to do this, simply install the Dualboot MS Dash feature, but make sure you have an account before you do, cause once softmod is install, you cannot make an account.