The disc always has to be in the drive to play mega.

As for the person who sent away their console to be fixed. When you get it back just do the license transfer that halogamer mentioned. I did it after my 2nd RROD because I had licenses across like 3 different 360's. My original unit which RROD, the one they sent in replacement, and then my Elite which RROD (and sent back the same one). Now all the Licenses are tried to the elite.

Do you not think if you didn't need the disc, people would install the game then sell it at gamestop ...

there is no gamestop in the uk that is what i was wondering i knew it was too good to be true but thought no harm in asking

 Yeah, I installed all of my games and then sold them back to gamestop.

I read somewhere that when you install game its tie to your console and you will have to reinstall it for it to work on different console. I am sure this is to prevent piracy.

@Garnett

I love your sig, it's always nice to call out some of these Sony fanboys shinnanigans since mods here tends to let them run rampant.

@MysticD I did what Nightsurge did,you should do it too!

No the disk  has to be on the 360.A friend tried to do it without but it didn´t work.