Today the Xbox Linux project announced that it had succeeded in fully booting Linux on the Microsoft(R) Xbox(TM) Gaming System. The free operating system Linux is able to be booted either from flash memory, or (more easily) from a CD inserted into the machine. (The Xbox still needs to have a modchip fitted to allow it to run unsigned code; however these are widely available and start from $30). In the first release Linux boots into a network-enabled state, running a web server and telnet, which allows you to log into the box from another machine. Although there is no audio or video output and input device connectivity yet, users have full control on the Xbox through the network, an Xbox with Linux can already be used as a network server, and by developers to add more features to Linux on the Xbox."

source: Geeknewz.com