For the purposes of this forum, since I don't know how to get a backslash to show in here.. I've substituted "/" instead.. so don't get confused! just change all / to backslashes when you're actually doing it. If you can't figure that out then forget it)

Anyway, I don't know where you got your Daphne .096 but it should have unzipped to all the required directories. And they are:
/framefile
/mpeg
/pics
/roms
/sound
daphne_xbox.xbe
font.xpr
Basically, the only thing I did to get it to work, was
1. Put the framefiles into the framefile directory using the SPECIFIED framefile names described in the .nfo file. (i.e.
lair.txt, ace.txt, astron.txt, etc.). Of course within each framefile, you have to have the roms path entered AS SPECIFIED in the .nfo as well (i.e.
./mpeg/lair)
2. Next the mpegs should go into a directory with the same convention. I don't know where you got the idea to do a "mpeg2".. if you just read the .nfo it will tell you that's not the way it goes

. The directory name for each game has to be as specified.
ex.
mpeg/lair
mpeg/ace
3. Same thing for the roms:
ex.
roms/lair
roms/ace
4. Next. Since the name of the main executable is "daphne_xbox.xbe" you have to change it to "default.xbe", especially if you're trying to make a bootable dvd-r. If you didn't rename it, then the xbox will never be able to boot it up from dvd
That should be about it unless I forgot something