http://www.bungie.net/News/Blog.aspx?mode=news#cid16252
Bungie:The “New Xbox Experience” was released today and one of the new features allows you to “install” your games to the HDD. While you still have to keep the original disc in the tray, installing to the HDD can make some games perform a little better while also putting a little less wear-and-tear on your DVD drive. However, this isn’t to say that ALL games will see optimizations from being installed. In fact, in the case of Halo 3, the game will actually see increased loading times.
Unfortunately Halo 3 will load slower in this scenario and could negatively impact your online experience.
feck. :sad: