It is possible to read the .iso file from a 'scene' released game (Project-X, Riot Etc) and extract the files.
My Version of the Software to do this will allow you to extrtact the files, remove, add or modify files and then re-build a working ISO image. This would be useful for making CD versions, Multi DVD games (If a menu is ripped or written), adding trainers or intros etc.
As far as reading from the X-Box orginal DVD disks to create the .iso image in the first place this is where the theory of it being hardware dependant comes in as all my attempts at raw reading sectors from the disks fails horribly (although I know the code works as if you try it on a PC dvd it works fine).
Still looking for any help / suggestions on the ideas about connecting the x-box drive to a PC, or info on the truth about the hitachi drive being able to read x-box disks.
Sorry if the orginal post wasnt clear.