You can run AIM through linux, I think it's called mAIM or something rather. There are all sorts of linux alternatives to AIM.
There's problems with win 98 running on XBOX, win98 only supports up to a certain processor speed, I dont remember what speed, but it does. I know it doesn't run very fast proseccers. Second, Win98 has NO USB SUPPORT!!! Aaaaaah!!! I do know that if Win98 was EVER going to run on an xbox, most likely it would have to be 2nd edition. But I do have a Win98 cd that says "with usb support" on it. But it's a special cd.
Drivers wouldnt be a problem. A standard ( well, almost) DVD drive. Emerson, that is. and what else? The hard drive is normal. There are drivers released for an xbox controller.
Basicaly, mostly USB support issues, but other than that, it would be great if u guys got it up and running.
I don't know, but since XBOX runs on a Win2K kernel, could it run Win2K???