I've setup the latest XBMC for Xbox today and I'm impressed. I had tried the XBMC media centre on the PC a few times before but was never that impressed with it compared to other media players for specific things such as MediaMonkey for music, and the build in Windows Media Centre offers nearly identical features.

However on the Xbox itself XBMC makes a lot more sense. It is fairly streamlined and fast to navigate around, and has a lot more functionality compared to other Xbox dashboards such as EvoX. However rather than replacing my softmodded Xbox's standard EvoX dashboard I installed XBMC as an application so I have both at hand.

It finds networked computers and NAS drives without issue and all media I've tried so far has streamed and played flawlessly. Accessing my whole music library on my NAS is useful as I can now leave the Xbox on without needing the PC to play anything, which after all is the purpose of a media centre. And DivX files with 5.1 audio encoding play correctly, switching my receiver into the correct 5.1 or DTS modes. Picture quality also looks really good on the TV, when the source quality and resolution of most is considered.

If you have a modded Xbox and want to give XBMC a try don't download it from XBins as they only have some very out of date versions on there. Instead grab the latest version from http://t3ch.yi.se/, current release is 9.04.1 Babylon. And is 63MB.