I'd guess the package you are referring to is a kernel that can be installed on an XBox. You've been able to do this with fedora core for quite some time now, maybe mandrake is just catching on. Basically, the XBox can become a fully functional computer that is able to do just about everything a "real" computer can do once you install an operating system on it. Here is some info although I'm sure this isn't Mandrake they are talking about.
You can do some research into current generation console emulation and you'll realize that the emulation is barely past its infancy (they can get bits of some games to work, but it's buggy and slow). And this is for windows. Emulation progress has ALWAYS been behind on Linux (probably by about 6 months to a year). Currently you'd have a better chance of being able to play a nintendo game on an xbox than an xbox game on a computer (they've been working on that sort of stuff for awhile now).