XBMC Screenshot

Xbox Media Center is an open-source program that turns your first generation Xbox into a cheap media extender for accessing your media files.

Version 2.0 is now out, with new features including DVD-Video menu navigation support, a new music player with crossfading and gapless playback. Karaoke CDG-file display, read-only support for FAT12/16/32 USB storage devices up to 4GB in size, and a number of new skins and skinnable features.

You can check out a full list of features and supported file formats and codecs here.

Every bit of information you could ever need on setting up your own Xbox Media Center is available here.