Anonymous writes "Can a modded Xbox running homebrew software really beat all existing designed-for-the-living-room multimedia devices hands down?! Tom's Hardware Guide seems to think so. They reviewed Xbox Media Center (XBMC) and say the free open source software turn an Xbox into The Ultimate Multimedia Center, the ideal home playback system for audio and video. (Apparently there is a PC software version available too: Media Portal)" The article also explains some of the more convoluted issues surrounding XBMC. But I definitely agree that this is a great system.
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