An Xbox has a 733Mhz CPU and 64MB's of RAM. Even a 2.0Ghz CPU is much more powerful than an Xbox. What makes a modded Xbox so cool is the versatility. Thanks to the XDK (hacked Xbox development kit), coders have been able to write media programs, emulators, and all kinds of software for an Xbox.
No, you really can't install Windows on the Xbox. It is possible to install Linux.
The Xbox makes a terrific media center for standard definition files. It will even upscale standard definition files to HD in good quality. It will not handle native HD files however.
If you are looking for an inexpensive media center with support for virtually all video, audio, image formats, and the ability to play all your old school game systems up to the original Playstation, the Xbox is terrific. If you are looking for a High Definition media center, then you are better off building a media PC.
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