i have a program that makes xiso files but can i just make a normal iso or will it not read it on the xbox
NO.. it has to be xiso. Reverse helix.. M$ decided to get crafty and read the disk from the outside edge.
Why don't you just upgrade to a bigger HDD and put the files directly in a game folder? I do this all the time and store backups on an external and just switch out games about once a week, depending on what I feel like playing. Beats having tons of discs to worry about!
I second that, you'll end up spending craploads on blank discs when you can just get a crossover cable from Best Buy for 21$ and set up an FTP client to transfer the files over. I hear Hard-Drive replacement is pretty simple, actually...