Lol. Well, I usually only do local work....but if your serious (which I doubt) you can PM me.
Sorry but this is only partially correct. The Xbox only has a P3 733MHz processor, clearly not powerful enough to decode HD content. So if you have any compressed HD content (as I do) this will not work. I have installed linux on an old Xbox I had sitting around and it was incapable of playing some of the HD content that I had. I have also tried the XBMC distros with the same results.
Also can you play Crysis with your Xbox? I know I can.
NAS's are wonderful devices and I fully agree that if you are not going to do a dedicated server, then get some type of NAS unit that you can just throw in a closet and never have to touch it.
On a side note Warpdrv I'm not knocking you at all, this has just been my experience. I am an open source guy as well, and run linux on several of my own PC's, as well as do linux server support and integration.