actually it's really easy to back up xbox games. and yes, the games must be read by the xbox dvd drive, and cannot be used in pc dvd drives. basically you hook your xbox up to a network, ftp into the xbox, and copy all of the files from the D:\ drive to a folder on your hdd. you can make that an ISO and burn it. or you can use a program called dvd2xbox. if you insert a game dvd, it will back it up for you to a desired directory on the xbox or even on your pc. however, both of these things require that you have modded xbox, or an xbox with an alternate bios that can run code not signed by m$.