ILLusions0fGrander released RarTo360 - an ExISO.exe GUI front end that allows you to extract 360 games from RAR or ISO to 360 via FTP:

Simple app -- if using RAR, it will extract the ISO from the archive then transfer ISO contents on the fly to the 360, then rename the $SystemUpdate folder. If using ISO it will just extract on the fly and again, rename the $SystemUpdate folder.
** For FSD2 compatibility "360 Game Directory" must contain leading forward slash! /hdd1/games/ not hdd1/games/ **
** Spaces are allowed anywhere besides in the ISO name **

What's new/fixed (since v2.6):
v3: added batch support. changed bat files to cmd files so they close on their own.
v2.8: fixed space/no space bug, spaces allowed anywhere besides in the ISO file name.
fixed rar batch file !! ALL rips prior to 2.8 using RAR method will still have $SystemUpdate Folder !!
v2.7: applications path may now contain spaces (ex: c:\my folder\RarTo360\")
Official Site: n/a, by ILLusions0fGrander
Download: here