Sorry, I should have jumped into the thread sooner, first of all, I would like to apologize for the poor post that I did make. I was in a hurry because the engine deleted my text several times because a screenshot size error. My native language isn't English, so if I don't pay the needed attention while I'm writting I can make some nasty mistakes, sorry :/.
About the NXC's compatibility, yes the game is compatible with swap magic, hdloader, modchip and with the latest version of pcsx2.
Namco X Capcom is a dvd based game, so you'll need to make an image outta your original disc, apply the path, and burn it into a blank dvd.
I'm not going to debate if a NxC's backup is going to damage your ps2's lens, but all I can say that this game won't damage your console, usually the consoles get damaged by boot procedures, cd rips, and other nasty things. However, there's some dvd based games that put some serious stress in your lens, I remember some, like the famous Valkyrie Profile Silmeria, and some others.