I know this isn’t new, but today is a special day: the new Xbox is going to be officially revealed tonight on everyone’s favorite music-free music channel. This post is about what to do with your soon to be obsolete Xbox.
Xbox-Linux installs have become fairly easy; You no longer have to crack open the case. You can buy or build a simple usb adapter to upload a 2MB file on to the Xbox by using an exploit in MechAssault. After that you can boot a live Linux cd. Even after this your Xbox will still be able to play games.
What you can do with it is up to you imagination.
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Use it as a front end for mythtv
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Tuck it in a closet as a headless server
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Install a variety of distros, like Gentoo
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Upgrade the ram, hard disk, and add vga out
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Install OSX as mentioned previously
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You could even build a cluster
The best place to start on this journey is the xbox-linux wiki.