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I haven't had an Xbox for over 2 years. Had no idea you could install games to HDD. That bloody disk noise really puts me off the 360 compared to my silent PS3.
Got a new 360 coming tomorrow with RDR though so will be installing it once I find the option!
Installing is also a good way to prolong the life of the console apparently, a lot less strain on everything once it's all on the HDD. It's also waaaay quieter and load times are a bit quicker.
iirc you just press Y on the bit where you would normally press A to start the game, most games are between 5-10 GB.