I picked up one of the Kreon drives on ebay for $30 for burning. Drop in original 360 disk, one click in Xbox Backup Creator to rip it to the hard drive, one more click in ImgBurn to burn the image to a DL disk. It copies all the security sector stuff perfectly.
I was able to use a really sharp razor blade to peal back my warranty sticker without making it look like it had been removed. Not that it matters because like BuickGN said lots of people have had their systems replaced with a broken warranty sticker.