Today the Xbox Linux Project announced that Microsoft Windows 2000 has been successfully started and run on a Microsoft Xbox gaming console. This has been accomplished by using the Linux operating system, which already works reliably on the Xbox, as host environment. Windows has been run inside Linux with common PC virtualization software.
Full networking is supported and Windows 2000 can make use of a keyboard and a mouse connected to the Xbox, as well as of any other devices connected through the USB. The performance of Windows 2000 inside Linux on the Xbox is good enough to play MPEG-4 movies at fullscreen. Common Windows applications like Microsoft Office work without any problems.More information @ Xbox Linux Project