Chances are pretty good that you'll have to uncompress it first to get your iso(if you didn't already know). Then you can just burn and play. good luck.
No question is dumb. That's what these forums are for. Actually, if it is an iso, you'd have to just burn it the way it is, or if you just want to ftp, then you'll need a program which will pull the files out, like Craxtion 4 or Quix.
If it is an ISO just burn it to DVD
Then you can do one of 2 things, use DVD2Xbox and copy the DVD to your HDD games folder
Or use Qwix or Craxtion4 to extract the game folders from the ISO into a folder you create and FTP that folder to your HDD
Yeah, if you have a modchip then it is fairly easy once you get the ISO it is just burn and play for most games.
Even building an ISO when you have the game files is not hard with Qwix or Craxtion4
FTP'ing can be a bit tricky at first, but after you do it once or twice it is quite easy.
And if you have not already your next upgrade should be a new
hard drive. 200GB or more.
You will see how much better the Xbox can be with a big HDD.
Games load much faster, no getting up to change discs inbetween games, and if you like you can FTP games and play then from the HDD to see if they are any good before wasting a DVD to copy them.