Hey x-ace,
I'm running XBMP as my dash right now and I have to say that I've never been happier. Using XBMP + the Xbox remote control has turned my xbox into a media nirvana =)
I have a nice 51" widescreen HDTV in my living room hooked up to the xbox and my surround system. It's great, my xbox loads up, I can access my movies (which I stream from my PC) when my buddies and I want to watch movies, when we have a party I can go into "My Music" and people can use the remote to queue up songs and play whatever they want, I can also go into "My Pictures" and show off some of my photography that I do on the side. Furthermore because I can split my screen in two (although it's not necessary), I've setup a batch file on my PC to automatically update the XBMP tvguide listings once a week so I also use the TV Guide as my interactive guide (which is darn cool).
Oh, and for all my games on my HD, my emulators, utils like Evox , DVDX2, ConfigMagic,etc, i use the "My Programs" menu item, and created a directory e:appsxbmpshortcuts where I store all my shortcuts (.Cut files) for all my programs, games, utils, emulators, etc.
I'd have to say it's a sweet setup and can't be beat =)
-- stokkes