I downloaded the files and burned the "contents" folder or whatever it was called to a CD-R as a PC (Joilet) disc, which worked. You have to remember to sign out of Xbox Live before you open it or it won't work.
Silly they're not releasing this (fully English!) demo in the States until later.
Can you say...Resident Evil 4 with better graphics. I had a better time playing the Dead Space demo.
My first impressions:
• Graphics and performance: fantastic. It looks quite nice.
• Controls: Awful.

I only tried the default, type D I think?, but I hated them and it was an almost impossible effort to move about and shoot. I had no problems with how RE4 on the Gamecube controlled, and the 360 controller is quite nice and somewhat similar, so this really surprised me. Maybe the final game will have tweaked controls or maybe one of the other three types will suit me better. I haven't had time to try it out too extensively.
Also: the over-the-right-shoulder view made things more difficult than necessary IMO. Can't see what's happening to your left!
• Gameplay: It seems the game really is meant to be played with two real people in co-op mode. Your AI controlled partner isn't anything to write home about. While I'm sure the co-op will be fun, I'd kind of rather have it be a regular single player game.
Summary: disappointed. I was really looking forward to this after how great RE4 was, but not I'm not so sure. Still on my watch list though, and it may turn out to be a lot better than my quick impressions from this Japanese demo.