Yes you can rip games onto the xbox drive.
But 1st you need to copy em to your pc hardrive and then to the xbox drive. I think there's a problem where you're not able to login twice with the flash fxp? Not exactly sure..
I've tested
NBA Inside Drive 2002 is about 1.92 gig
DOA 3 ripped
Project Gotham Racing ripped.
I currently have those 3 on my xbox drive.