"This is because Microsoft used the Nvidia GPU for the original Xbox, and now that they have switched over to ATI for the 360, that Nvidia GPU has to be software simulated to properly play original Xbox games. Nice one Microsoft, real classy."
That would also be my guess as to why some of these things re crashing. Good news is that it can (probably) be fixed with software. Bad news is... well, bad news is they should have stuck with Nvidia. Not that I have any interest in owning one of these, but it's fun to watch the good ship Microsoft run into another iceburg.
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