Hmm, here's an idea proposed by a friend of mine.. Why not just write an interface using the Xbox developer kit and then your Xbox would play DVDs AND mp3s off of your LAN?

I think MS is going to charge something like $25 for the remote control that enables DVD playback. With the NTSC output, you could code a kick-ass mp3 player. Plus there's plenty of CPU power to do the decoding.

-Hoagy.