It works like a charm..
The Lips.4.in.1.zipfile is one available for logged users and it is only 321KB.
I've downloaded the files in iso format:
Lips (Europe) (En,Fr,De,Es,It,Pl,Ru).iso
Lips - I Love the 80s (Europe).iso
Lips - Number One Hits (Europe).iso
Lips - Party Classics (Europe).iso
Extracted it as mentioned using "Xbox Image Browser" and run the .bat file.. perfect!