I wanted to know would that be possible to do, sorry i have no sample code I try to look for examples in C# because the xbox uses XNA and if I can run code to alow me to do that with a small GUI
I'm unable able to comment due to reputation, and I feel this would work as a comment as well, but it is not possible to mount an iso to a virtual optical drive on the XBox 360, as this requires the Virtual Disk API, which doesn't exist for the platform. If this is for compression, know that XNA supports compression as part of the build process, look at MSDN (http://msdn.microsoft.com/en-us/library/dd231952.aspx) for details.