Hi,
I'm glad the new sources.list did the trick,
No I haven't tried upgrading debian or compiling a 2.6 kernel as I have been busy downloading the source for any applications I wanted and have been compiling everything i need as I go along.
I use Xebian basic (without X-Windows) 1.1.4 as I use it as a headless server running NAS type services such as FTP, Samba, Media Server and other applications.
It all worked a treat until I managed to break the installation a few moments ago (whoops!) by modifying the /etc/modules file and the linuxboot.cfg because I wanted to enable advanced power management as neither apm or acpi are enabled by default and I wanted to use apm to suspend the system on demand. I'll have to use the xebian boot cd to reverse my changes. I obviously need to learn more before I start messing about with kernel modules. :-)
As you can tell, I am no linux guru, I just continually experiment with stuff until it breaks. It's the only way I learn about an OS. :-)
I'd be interested to hear how you get on with kernel 2.6 compiling on the xbox.