i've seen the same thing. It can probably be attributed to the amount of pixel generation the game requires, and the video card for the 360 has a slower draw rate than can keep up with all the detail in the environment.
make sure you have unzipped the file and put it into your addons folder. After that when u log in to wow, at the character selection screen you will see a button in the bottom left corner that says "Addons". Click on it and it should show you a list of all the addons you have, and you can enable/disable them. Make sure you get the most recent versions to avoid errors!
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