let me just ask you straight out: what do you know was achieved in terms of "great things"?
i don't even understand what you are trying to accomplish. you haven't named an application you want to run or anything.
no matter what you want to do, if you really want to run *any* MS application, you may as well run a windows box. what you get is what you get. xdsl will be able to print, wordprocess, run a stripped version of firefox with *no* flash (and if you do get it it's not worth running on a standard issue xbox [64mb ram, standard cpu]), limited javascript, no IM'ing if you want to do that, although you will be able to use various web based messengers, you *might* be able to burn to DVD/CD if you install a burner (i have a burner installed but have yet to try burning); it's enough to get you by while you're loungin' on the couch on the cheap.
xwine is dead, so you have super-limited options of what you want to run on it, regardless of the issues installing it may or may not have given you.
further - if you do not understand why you cannot write to disk, you need to learn how linus users are structured and you should also inform people of what you are trying to save to your drive. if you are trying to download something from firefox, you *may* have to run FF as root. if you don't know what "root" is, think of root as "administrator".
linux gives fewer permissions by default to users other than root.
start telling us what you're trying to do instead of running multiple sentences together about problems you're having, because it's a ll a jumbled, hard-to-make-sense-of mess.
and by the way, you are not off the hook with this one:
what do you know was achieved in terms of "great things"?
i want to know what you think you know.