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From my knowledge of previous consoles it doesn't normally matter where on the disc the data is located, so the Gamecube starting to read the data from the outer edge instead of the inner wouldn't really make all the much difference. The system will just seek the disc until it finds the boot sector.
Take the Dreamcast as a classic example. All scene releases for the DC were dumped and then hacked ISOs. They had to be like this as the DC's GD-Roms are 1GB in size and cannot read them in a standard CD or DVD drive. They were dumped out to a PC through a serial cable, but you couldn't fit the dumped ISO onto a standard CD a lot of the time due to their size. So what did they do? They recompressed the video and audio in a game with better compression routines and removed unwanted files such as copyright or other language files from the disc to squeeze the data down so it would fit onto a standard CD. This method is much like using DVD shrink to fit a DVD9 film onto a DVD6 disc. A DVD player doesn't know the difference and either did the DC.
But even more, many games didn't fill a complete GD-Rom, and the dumped ISO didn't even need a full CD. And the hackers discovered that moving the data to the outer edge of the disc allowed the DC to load the games faster. So they padded out the first sectors of the disc with dummy data in the ISO so that when it was written to CD the data ended up being pushed to the outside of the disc.
So you can see, even if the gamecube does read from the outside in, you can use ways to make the blank media written so that the data is in the correct location on the disc. Also remember that certain disc image formats store exact track and disc position information so that when the copy is written it makes an exact sector clone of the original.
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I don't know what to do with my GC now I have the Wii. The Wii takes GC discs, controllers and memory cards so I really have no need for the Cube. I'm not sure I want to get rid of it completely though as it's a nice platinum colour one, but then if I'm not using it and am unlikely to again, there isn't much point keeping it :huh:
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Do all Gamecube games work perfectly on the Wii? Any compatibility issues reported yet by anyone?