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Don't dismiss XBOX emulation so quickly.
Afterall unlike the PSX the XBOX hardware is already closely based on a PC.
The nForce chipset is very similar to the XBOX hardware and I expect a motherboard with the nForce 415 chipset and a Geforce 3 or 4 graphics card would offer a system close to the XBOX on a hardware level.
I expect the main problem would be that the XBOX uses a processor based on intel hardware and the nForce motherboards are compatible with AMD processors.
I would not be surprised if someone is already working on this the question is just weather an emulator would run under Windows or possibly from a boot cd taking direct control of the PC's hardware.
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