Convert your old XBox to a Media Center PC

[mwgiii]

Takes a little leg work to get running, but will allow you to:

Your modded Xbox running XBMC will be networked with the rest of the computers in your house and let you:

• Play videos, music, and photo slideshows located on any shared drive in the house displayed on the television in your living room
• Watch Apple movie trailers, YouTube videos, Launch.com videos, and see RSS newsfeeds dynamically loaded from the internets
• Transfer files to and from your Xbox's hard drive
• Rip DVDs to a shared network drive to play later or backup
• Watch DVDs sans "dongle" (no more DVD Playback Kit required!)

Plus all your games and saved games work as usual (EXCEPT for Xbox Live—see more below.)

All the details here:

Geek To Live: Transform Your Classic Xbox into a Killer Media Center - Lifehacker