What exactly are you trying to patch? And you would put it in the same folder that the game's main .xbe file is. Think of .xbe in the same context as .exe, it's just the XBox' version of an application. If you want something to work with the game, then put it in the same folder as the game's main executable. You made need to use your software(Such as XBMC) to launch it directly, depending on how it functions. Hope that explains a lot.
