Installed both discs. But thats the only thing thats gone right. Neither my ME1 or ME2 saves are recognized so I have to start from scratch. This would be AS big an issue to me if they let you choose between the game changing options from the previous two games.
BUT THEY DONT.
Did anyone else not get the option to change difficulty? If I wanted to go for the insanity achievement right off the bat I would have to create my character over again and choose the difficulty before starting the game.
ME1 saves don't import because they have changed the character creator too much. There has been reports of problems with ME2 saves that are on the cloud, or have been transferred from the cloud. Basically, if your ME2 save was on the cloud at any time, it won't import. Solution is to transfer it to a USB drive, and then transfer it from that to your Xbox.
You can change all the game settings from the Options page on the main menu before you even start up a new game. At least you could in the demo.