Hi,
1. It is a known issue that xbox dvd drives have problems reading different media.
I assume you know you need to create an xiso and burn that with your favourite burning software.
You can add a large file in front of the files that must become readable.
This pushes the file more to the outer tracks of the dvd, and sometimes it is better readable at that position.
A file of 200 to 300 MB should do the job.
You can try different media and burn at a low speed. CD-R's most of the time don't work at all. Sometimes, one brand of media works and another brand doesn't.
2. You can create an xbox harddisk from an empty one with the xboxhdm package. All you need are the M$dash files that are on the C and E partition. You can extract those from a slayers rescue iso. I use the qwix program to extract an xiso. It is unclear why you get the error in xboxhdm. Have you ever used it before on that specific pc? Is it a pc with sata connections? How many ide connectors still exist on the motherboard? You could try the ldotsfan xboxhdm package that boots from an usb stick. Maybe that will solve your issues.
So, yes, a few more details might be helpfull.
regards.