Excuse me for being a simpleton, but why not just install Xebian and go from there? Chances are even that the LMCE binaries (i386) will run under there.
A network boot would be nice but if you have to flash the bios first that would kind of invalidate the ease of use in my opinion. Personally I would prefer a solution that works with a softmod so you don't even have to open the case. And it shouldn't be a problem to have multiple "dashboards" and/or systems installed like XBMC/EvoX/UnleashX/Xebian/Gentoox/etc. (even the original BIOS, if you want to play "live", for what it's worth).
That said, I might fix up the old Xebian install and have a stab at it too. I never went as far as compiling my own firmware or flash the bios, and it's been a while, but I still have the stuff to build custom softmods (ndure).
I think, but I'm not entirely sure, that the xbox kernel patch was mainly for providing "fatx" support (for reading/writing native xbox partitions, not really essential for what you want to do with it I reckon.
Either way, good luck and happy hacking.