Hope this helps. I have a Xbox 1.0, Xenium Ice, Thompson Drive and at the time stock HDD. NFSU2 played fine from dvd, however when I upgraded to 200gb Western Digital utilizing Xenium upgrade wizard everything worked fine as far as apps. If I used any kind of backup or original dvd it would freeze in the same spot as everybody else is reporting. I then upgraded my HDD with slayers 2.6 and everything has worked great since including NFSU2. So, I suspect possibly something with the xenium upgrade wizard is not quite right, maybe something with the cache as everyone else is reporting. Hope this helps!
kiwiav8r