It looks like recently JayFoxRox has been doing pretty good progress on XQEMU. More games should start to show something now, but not much yet. You can check out the official XQEMU site with new screenshots of working games such as “Barbie Horse Adventures”. Most of his work has been focused on getting the tricky graphics to work. This has proven to be challenging due to the fact that the NV2A, the graphics processor of the Xbox, is not well understood and extensive reverse engineering has been required to achieve what we can see today.
As always, setting up XQEMU is quite difficult. We will publish an updated guide on how to do it for Mac OSX, Linux, and maybe Windows.