i know i need a mod chip for my xbox in order to play them on there, but is there a way to play them on my computer after making a backup?
No. In fact, your computer won't recognize the disc even if you burnt it in Nero or Alcohol 120. However, if you burnt it in UDF form, it can read the files, but you still won't be able to play it on your pc. Also, UDF isn't as fast as ISOs are, so ISO is your best bet.