Before discussing "working," we must clarify the terms. In the emulation scene, a "ROM" (Read-Only Memory) usually refers to cartridge-based games, while an "ISO" is an archive file representing an optical disc. On the Xbox 360, all games came on dual-layer DVDs.
The short answer is that Xbox 360 ROMs and ISO files can work, but with limitations. Here are some key findings: xbox 360 roms iso work