I never want to use the word "impossible"... but it is highly unlikely.
I've seen Linux run on an xbox, but I've never seen or heard of anyone successfully run xbox games on Linux. I believe (though I could easily be wrong) that the xbox uses some sort of embedded Windows and the games use some special DirectX. You'd have to provide libraries or emulation for the xbox system.
As for IPs... I'm not lawyer... but I'd guess you'd be on shaky ground here in the USA thanks to the DMCA as It would most certainly require circumventing the encryption on the disk.
Last edited by jtshaw; 01-02-2008 at 08:22 AM.