Hmm, there are linux executables to do this so far i know, and you can run
linux on xbox, therefore its possible. I am doing something different and way
more complicated on my network.
I got a main server, where i ran my custom HTTP so i could launch a game via
HTTP (LinksBoks) for the GC, or use my PC to do it. (This is actually working
and done, but hardlinked directories for some stuff)
Now as i run an xbox as linux server, i will most probably attempt to make my
HTTP server, tunnel via ssh or telnet to the xbox and login/start & kill the
services with the correct games.
I still think your idea is cool for ppl who want to stream from the xbox using an
XBE. You should check for a network traffic sniffer, and see how it communicates.
It has to request files and handshake so it works, so check that out

Good Luck with your project!
