Since the New Xbox Experiance now allows you to save the game to your harddrive does that mean i can go to blockbuster or my friends rent the game and have it for ever?
No, you have to have the Disc in the Xbox to play the game. The install is not the hwole game, just certain key fragments of data that speed up loading times.
I wonder if it would be possible for someone to make an app like alcohol and save the disk as a virtual disk. Without knowing anything about it it seems as if microsoft can do that, only selectively.