Is It Okay to Buy Backups of a Game That I Already Own? (xbox 360)?

I was wondering. I was thinking about buying a modded Xbox. I have had a lot of issues with my Real Xbox 360 Games getting scratched and rendered unusable. I have heard that it is okay, and legal as long as you actually own the original copy of the game you are using. I read the disclaimer on this site http://www.3l337gamers.webs.com which makes sense. I just want some others opinions before I get into this. Any input is very much appreciated.

Suggestion:

it is illegal to copy a CD to sell for profit, or to give to someone who has never purchased the game. But if you copy a CD for your own back-up purposes in case your original copy gets scratched or lost, it doesn’t matter.
http://www.copygames.org/