Xbox Media Centre - it's the only way to go! It does everything you want, along with a thousand more things you don't realise you want until you find out it does them. Media playback - every codec under the sun, network sharing and streaming from your PC, web streaming, basic web browsing including Youtube, emulation of other game consoles, and on the list goes. It even plays Xbox games.
The easiest way to achieve this of course, is to have it done for you. A good commercial modder will chip it and deliver it running XBMC, ready to rock. But if you're tech minded, determined to do things for free, and enjoy reading until your eyes bleed, you can softmod it.
Read up on Kingroach's Ndure mod. This modifies the software on the Xbox HDD, essentially taking the place of a modchip. In a tiny tiny nutshell, you compile a boot CD (for PC), chuck your Xbox drive into your computer, and make the changes. Once the mod is done, you add XBMC and use it as your dash (look for the T3CH build).
The fly in the ointment here, is that the Xbox locks the HDD using a unique EEPROM code, so that it's only readable in
your Xbox - not any other Xbox, and not your PC. In order to access it, or build a new one from scratch (which you ought to be doing), you first need the EEPROM code of your Xbox.
The EEPROM.bin file is THE most important part of this whole process. It's your key to the Xbox, and your safety net if anything goes wrong. As long as you've got it, you'll always be able to build/repair a drive for your Xbox.
You may read about the HDD hot-swap method to get around acquiring your EEPROM. Don't do that, it's risky and rough as guts. You can aquire your EEPROM info by (i) using one of the game save exploits, which will allow you to use ConfigMagic to read your EEPROM, or (ii) building an EEPROM reader, and reading it straight off the chip yourself. I did the latter - about $3 in components, plus a couple of free Windows apps called PonyProg and LiveInfo. It's the best little gadget a modder can have.
I'm kind of trailing off here to go outside for a cigarette
...hopefully some of this helps, feel free to ask more.
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