That's exactly what it does. It needs special BFM (Boot From Media) BIOSes to work - you can't just use any BIOS. There's a good summary of the available BIOS loaders
here. I use
PBL-Metoo, available from the usual places - look for metoo-m8plus-v1.4.1.zip. There are loads of BFM BIOSes available in the usual places as well, and there's a tutorial on how to make your own
here.
It's relatively easy to use. Edit the BFM BIOS to launch your preferred dash as you would if you were flashing the BIOS. Put your BIOS in the same folder as the PBL files. Edit boot.cfg to point to your BIOS, e.g.
Romfile My_BFM_BIOS.bin
Then run default.xbe. The screen will flicker, and your dash will load. First time I tried it i wasn't sure it worked, so I edited the BIOS to cycle the LED so I got a visual indication that I was running the BFM BIOS.
You can use it, for example, to load a VGA BFM BIOS if you want to occasionally connect to a VGA monitor. There's a pack of VGA BIOSes available in the usual places as well - look for Frostys_BFM_VGA_BIOS_Pack.rar.