Gabby pretty much hit it on the head. In order to reach the full potential of the xbox a "mod chip"
www.teamxecuter.com must be installed and programed along with a larger hard drive. It allows you to run "unassigned code". At that point the door is wide open. You probably would have a lot less headaches getting an xbox 360 though. But you do have a friend or two who can help walk you through the programing process
If you are intersted here is a list of stuff you can do.
Play online for free via xlink. (link compatable games)
Backup games to hard drive. (Great if you have kids that scratch up the original)
Play Nintendo, SNES, N64, PS1 games ect. (requires an emulator and ROMS)
Stream pretty much any kind of media from your PC.
Watch movie trailers on demand.
Listen to internet radio.
Get a generic weather forcast for your area
You can record tv also but it requires replay tv
It does require high speed internet and a router.
If you lived closer I would set you up.
Brian
I forgot to mention you would also need a large Hard drive on your computer. Thats were all the media (mainly dvds) would be stored.