hi! I've just intalled it on my xbox with no issues. Just follow this steps:
1- Extract iso of both DVD1 and DVD2 (I use ISO-Extract V2.7.0 for doing this).
2- Once extracted you sould look for the folder named content (I think it is on DVD2). Inside content you sould find a folder named 000000000000, inside this one another folder. this last folder is the one you need. Copy ONLY this folder to de root of your USB drive. I don remember the name but you will recognize it because it is an hex number.. 5A4567B324 something like this xD.
3- Copy the other dvd as a normal game (in te folder where you have all your games).
4- Plug the usb drive in your xbox and enter file manager from your freestyle.
5- Now you should decide if you want to install the game data in the original xbox hard drive, or in the xbox partition of your external hard drive (I have a 4gb slim so I obviously put it in the xbox partiton of my external hard drive xD). Once decided enter in the drive you picked over the file manager, select content, enter in 000000000000000 folder and hang in there. In the other window of the file manager select the drive where you put the folder with the game data in step 2 (don't enter in this folder, we want to transfer it).
6- Transfer the entire forlder to the other window. It must be in the right pleace in order to work. If you do it right you sould be able to see it like a normal game data in the original dash of your xbox.
7- You should be ready to play xD.
Hope it works for you!