I don't know if this is the right forum for it, but....

Is there a piece of software that will create an XISO directly to the XBOX HD from the XBOX DVD Drive?

Surely it would be quicker to create the XISO on the XBOX's HD and then FTP the XISO over, instead of having to FTP every single file and then creating the XISO on the PC's HD?

Look at the Nkpatcher tools. I believe it will only work with ndure/nkpatcher softmod or the new modchip bios patch. (Read in xbox bioses, thread is in there.)

Note fatx filesystem can't handle files over 4gb. (xISOs would be limited to 4gb, fine for most games)

There is an option in DVD2XBOX to either rip the game disk in folders or rip it directly to an ISO Image.
Or if you will FTP it to the PC anyways, just get CloneXB as it will create the XISO and FTP the files to the PC.