What is the overall performance difference a player can expect to see when running Halo 3 straight from the disc versus installing it to their HDD? Some websites have reported that the game runs “worse” after the install.

The Xbox 360 HDD has a section for games to use called the utility partition. Games can use this section for whatever they want to; Halo 3 uses the utility partition to cache maps as they will load faster off the HDD than off the DVD. As a side note, the utility partition can be deleted when other games are played. This is why maps can take longer to load when you play another game in between various Halo 3 sessions. (As was the case with Halo 1 and Halo 2.)

So when Halo 3 runs, if a HDD is present, we copy maps from the DVD to the utility partition (on the HDD). Think of it as an on demand install of Halo 3 to some scratch space on the HDD. Halo 3 doesn’t actually know where it’s running from, so it always assumes it’s running from a DVD. This is an unfortunate consequence of new features (namely, install to HDD) being added to the Xbox 360 after Halo 3 shipped. And as a result, it means that even if Halo 3 is already installed to the HDD, it will still copy maps to the utility partition.