XBox vs. PS2 backups

[Arbanak]

Just to be sure I understand...If I buy an XBox with a modchip (such as the X-Ecuter2.3 Lite) installed, I will be able to back up the game DVDs using my PC DVD-RW drive, and then direct boot those backups on the XBox, thereby keeping the original DVDs stored safely away. I will not need to do anything such as network the XBox with my PC. Is that all correct?

Is there a particular ripping/burning program(s) that works best for this task?

Thanks.