Xbox Backup Creator (http://xbox-backup-creator.software.informer.com/)
ISO image you want to extract (game)
Tutorial:
1. Extract and run XBC
2. Go to Image tools > Image Browser
3. Go to File > Open Image File and select your iso image
[note from alienedd: The original post had this second image as a copy of the first. This is also reflected in the "Your360Stop" site as well.]
4. When you select the ISO, you will see a game in your left panel
5. Right click on the top of the list and extract
6. Choose where you want to extract the iso
7. You are done
You should make a folder for every game you extract. In this case I will extract all the files in a folder called GOW 2, so when you put it on the xbox it's easy to organize