this was the only method that worked. All others that I tried, like dmg2iso.exe didn't work.
And then I extracted the folders with trial version of MagicISO (because I only needed to use it this once, so there was no sense in purchasing any apps for this).
Now I have this X-Lite in folders.
I think it should be possible to install this to the iPhone 3G v.2.0.2 with iPhoneBrowser and run it.
Can someone either tell me how to do it or maybe try this out and tell me how to do it?