Info here is correct, you need to make sure you have the same versions of the disc, which pleanty of CDIs floating around out there will cause issues. Back a decade or more ago when I still had a VS cable, my friends and I could play no problem once we both had actual discs. At first we tried playing with a burned and an original and it never worked proper.
I know you can get VOOT on the Xbox 360/Xbone, but that (1) wouldn't have splitscreen capability, (2) require a switch since I don't think you can just plug two Xboxes together and make them network, and (3) necessitates buying 2 used 360s/Xbones, controllers, etc, which is probably more expensive. Plus I can also play F355 and try out those Aero Dancing games.
The xbox 360 version is great, but as this is a DC board, of course I have more fun playing on DC.
Two xbox consoles can be linked together without a switch but you need to use a Crossover Cable, or a crossover adapter in a standard Cat5. I used to do this a lot back on the original xbox.