Ok in case I haven't spelled it out ~clear enough~ for you.
YES you CAN use the LG-4160B to burn XBOX360!!!
You can NOT use the LG-4160B to rip your XBOX/360 Backups, so that'll leave you Two Options, One use a Samsung Drive in your XBOX360, alas AFAIK: I don't think you can use the Hitachi on the XBOX360 to Rip your Games, Two you get yourself a Samsung SH-D162C (DVD-ROM Drive), to read out (i.e. rip) , your Backups.
Now as for Software I've never tried using Nero, I've tried Imageburn and ended up burning a Coaster, alas I sum that up to user error.
I've since went on to useing the "XBOX Backup Creator", and burned a few more Coasters, again due to Stupid User Errors.
Alas the Magic in XBC is it's simple setup and Two Button "Fire and Forget" ease of use.
For simple and easy XBOX and or XBOX360 Backups, assuming that you have the means to use the SH-D162C or your XBOX360 DVD ROM Drive to make Rips' with. (i.e. the Samsung Drive)
Use the XBOX Backup Creator, it's simply the single best Two Button "Fire and forget" Method to make XBOX/360 Backups!
Given the overall simplicity of the "XBOX Backup Creator" (You should be able to find it on this Site), I don't know why anyone should want to use the 'WX' or ISO Buster Method(s), when the XBC can simply do it all?
Now as for how to burn other 'Questionable' Media, alas I can't be any help to you, but I'd imaginr Imageburn should work well enough.
Just some Small Tips:
1) Use DVD+R DL ~7.92Gib~ (i.e. DVD-9 Media), there may be mixed reports about DVD-R DL's but DVD+R DL are know to work almost 100% of the Time.
2) **Make sure your LG-4160B has the latest (w/or w/o RPC-2 Auto Reset), Firmware installed**
It's possible that if you have an earlier version of the Firmware that didn't support Bitsetting (or Auto Bitsetting), that the more current versions, do.
With the current Firmware (A306), the LG-4160B will Auto Booktype all DVD+R DL to DVD-ROM, so there's no need to try and force such a setting though Software. (i.e. Nero).
3) The key to getting good Burns is to making sure you can make good rips, to that end I recommend you check out the XBOX Backup Creator.
Depending on how you approach this you may need to read more about the specific DVD ROM Drive Model you have and how to enable certain Modes (i.e.Samsung F800 or F900??), to enable you to unlock the Drive to make a successful rip.
Or again you should consider trying to pick up a really cheap Samsung SH-D162C (ca. 20.00(EUR)), at my local Computer Parts Shop, at that Price I'm seriously concidering trying to snap up the lot of 'em and placeing 'em all up on oBay for a nice little Profit.

And as someone who owns a SH-D162C I can telly you that there's no better way to rip your XBOX Games.
Thanks, so i can use this for using it on a Hitachi 360 Drive and i dont want 2 rip games