(Title Says) But anyway, So I was just wondering What its called when you download a game and burn it to a Disk then you are able to play it on your Xbox. What is it called and How would you do it? Thanks
Its called playing Back ups and follow this guide if you wish to do it - http://www.xpgamesaves.com/topic/25423-beginners-guide-what-you-need-to-flash-a-xbox-360-and-how-to-set-it-all-up/#.UED9S9ZlSXs
It is also called a 'Copy', but yeah you would need hotswap, or you could burn the download to a disc, which would be the copy, and you would need a chipped Xbox or a flashed Xbox, but I guess the easier way would be to use hotswap or a flash Xbox.
Yes, you can play online with them. As long as your drive is flashed with LT 3.0 and all the security data is valid on the iso (done by using abgx360) then you're as safe as you can be