The first thing you need to do is to have your Xbox 360 DVD-ROM connected to your computer. If you don't feel comfortable taking apart your Xbox 360 every time you want to make a backup, you can buy a Samsung SH-D162C PC DVD-ROM flashed with Kreon firmware. This is a regular PC DVD-ROM that has been patched with a hacked firmware that allows you to read Xbox/Xbox 360 games on your computer. This drive makes creating backups much easier and it is recommended to purchase one. I now have some available see the Xbox 360 page for more details.
Now that you have all the software installed on your computer the first thing you need to do is open Xbox Backup Creator. In the top left hand corner of there is a dropdown menu. Make sure that you have your Xbox 360 DVD-ROM or (Depending which one your using) Samsung SH-D162C PC DVD-ROM selected. Under "Image Style" make sure you have "Complete Backup" selected. Should look like this.
Now insert your original game disk in your DVD-ROM drive, click the "Start" button and chose where you want to save the image then click "Save" button. This process can take a few minutes be patient it'll be over before you know it.
Change the Booktype (Optional)
This is completely optional and some say it doesn't make a difference. Changing the book type of your DVD+R DL media can significantly increase the readability of your backup. Basically by doing this you are simply changing the type of disk that is being detected by the Xbox 360 DVD-ROM when you insert the game to play it. For example, the disks that you are burning are DVD+R DL disks. By changing the book type these disks will be seen as DVD-ROM disks instead.
Now let's get this show on the road. Insert your Verbatim DVD+R DL disk in your burner then right click the .DVD file you created in the step above in ImgBurn 2.2. In the bottom right click the little picture of an open book.
Now there will be a screen that will show up that has multiple tabs with Brands of DVD Burners as their names. Click on your burners brand. (Ex. I am using a LITE-ON burner so I selected the LITE-ON tab.) Now in the "Change For" dropdown select "Drive (For DVD+R DL Media)". Then under new setting select DVD-ROM and click the "Change" button.
Here is what it should look like:
Your booktype should now be changes. Continue to the next step.
Burning the Image
You're almost there. Navigate to where you saved your image. Right click the image and select "Burn using ImgBurn" and ImgBurn will open. Under "Destination" there will be a dropdown menu. In that dropdown menu make sure that your DVD Burner is selected. Also, under "Settings" in the bottom right of the screen set the "Write Speed" to 2.4x. This is a very important step. If you do not burn the disk at 2.4x you risk causing the disk to be unreadable by the Xbox 360. Should look like this.
Click this button.
Now kick back, it'll take about 40 minutes for the game to be done burning. Once its done. Insert the disk and enjoy your backup.