In order to run roms off of a disk i need to change the config file in my emulator. I need to type in the directory of my xbox's disk drive, because that is where the roms will be. Is this correct?

yes, make a rom path to d: drive

Is there a specific folder on my xbox's hard drive that i need to put my xsnesx emulator folder in? I really just want to put it an emulator folder under my applications directory! Ex: e:applications/emulators/xsnes

just put emu in e:\apps\emu\xsnes or f: use the same path as e:

Thank you! Finally someone answers my question.