I have a friend with Mass Effect 3, and for some reason it freezes at the same point on Tuchanca. I tried my copy and the same thing happened. Both copies work fine on my 360, and I've even tried installing both on his Hd, which stops at 42% and says to clean the disc. This only happens with disc 2 of this game. The solution I thought of was to use my xbox to install it to his HD, but then I would have to sign it to his xbox so that it will read it from the HD. I seem to remember a program that did that, but I'm not sure, and if there is, how would I go about doing it?

It's not possible to install on one Xbox and play on another, even with signing in. Hard drive installs are specifically locked on a per-console basis.

It could be possible to transfer installs, but, if it is, it would be advisable to avoid it due to banning concerns.

So there isn't a solution for this? It's weird that his console just doesn't like disc 2 of ME3, other games work just fine. What could possibly be the explanation why it doesn't read only this disc?

Not as far as I'm aware. Sometimes reading failures are the result of small scratches or less-than-perfect lasers. You might even try changing the console's orientation to see if that helps the installation process. (Don't do this with the console powered on or a disc in the tray. You WILL destroy the disc.)

A couple of my consoles have issues reading certain discs. It's unfortunate, but sometimes particular lasers just don't get along with individual discs.

What about what you said before about transfers? He doesnt play online, so banning wouldnt be an issue. Would the game still play off the hd?