I've bee wanting to play this game for years but it's one of the infamous games that will not act right and display incorrectly on a 1.6 console. Using component cables of course. I know JSRF and Fable had workarounds so I figured I should ask if one existed for this game.
What's the issue you're seeing exactly? There's a few titles that are known to have problems on 1.6es (see here, also has a few workarounds you could try) - JSRF and Fable you already mentioned, then there's Panzer Dragoon Orta and Gun Valkyrie, but DS2 news to me.
If a fix isn't yet discovered for this particular game, the best you can do is try each mode until one works. Either way all owners of non-hacked 1.6 consoles must play certain games in 480i.
Kinda sucks though since the game is a looker and I'd love to play it in 720p - console is softmodded by the way. One of the nicest features of the Xbox is it's capability to play a few games in HD this day and age.