Ok, first the obvious...
You did format the drive with Evolution-X right?
Assuming you did...
What you are NORMALLY seeing is that the Xbox is having a problem reading the DVD/CD that you are using.
This error message seems to be a "catch all".
If you've burned from an ISO download, quite probably the download was created improperly or poorly.
You MIGHT have better luck by unpacking the original ISO image using one of the Xbox ISO extractors (UDFEXTRACT is wonderful!) then FTP'ing the files to your Xbox.
You might also want to burn yourself a new one using RecordNowMax, because the CD you have is not good.
There are a couple of Exceptions to the above, (Conflict Desert Storm, and the original PX-Chase release), but every other program works fine using boXploder to place it on the HD.
BTW: This is a great test of your Backups! I've double checked all of mine this way, and threw away 3-5 of them because of what you've seen. All are working now.