Not to dig up an old thread, but I think if any of this were possible, it would have been done already...to every console capable of playing DVD video. It is an interesting idea, though. What I keep thinking of is those DVD-video based games that sell for $1.00 in bargain bins all over the place. I wonder if you could get one of those to communicate with the Xbox HDD.
One other thing that I always had in the back of my mind is that when the Doom movie came out, the DVD featured a playable Xbox demo of Doom 3. I only know this because I used to work at Blockbuster, and when I rented the movie I tried to watch it on my Xbox. To my surprise, Doom 3 automatically launched. I never did get around to checking into it, but I wonder if the Xbox would launch that .xbe from a burned copy of the Doom movie DVD. I highly, HIGHLY doubt it, considering the Xbox seemed to completely ignore the fact that the disc was actually a video DVD. I'm going to screw around with this.
The idea of an instant auto-installer DVD has always been nothing but a wet dream, but I think we've all studied the Xbox deeply enough now to find a way to make it work. It would be ironic because I always used to have a feeling that the DVD-Playback kit was the key to modding Xboxes when they came out. There's just something about the technology that "feels" like it could be used as a backdoor.
Could take me months, but this is my new official project.