Don't get rid of your old Xbox!
It is possible to modify the software on your old Xbox without opening the unit or breaking the warranty seals. This is done without adding any mod chips.
Once modified the Xbox can be used as a full media centre that can play a vast range of video formats from DVD, CD, USB and network locations.
With an internet connection there are a wide range of services including local weather and news feeds
These units are worth about £45 which is very cheap indeed for a full computer controlled network enabled media centre, with the right leads you can have 5.1 surround sound and RGB scart video.
Add an larger hard drive and you also have somewhere to store all you music and videos!