If your DVD drive is dead, then you can't backup games with ftp. Yes you can transfer ISO's from your computer to your Xbox, but the only way to get those ISO's (apart form illegally downloading them) is to ftp them from the original disc. But since your DVD drive is dead, then that's not an option.
But assuming you have a working DVD drive you can throw in there, you can just use DVD2xbox to rip it to the HDD.
Well, my DVD drive isn't dead, it just doesn't seem to work very well. It only seems to be able to rip some games (or for that matter, play only some games). I was wondering, though, can I install a new DVD drive? I heard that you can and even read some of the tutorials here, but they seem to say that they can't read Xbox discs or something? If install a new one with one of the tutorials here as a guide, would my Xbox retain all of its functionality?
Also, I am checking out the Craxtion thing right now.