Well the only Dashboard worth worrying about is XBMC
(XBOX Media Center)
there are alot of guides for soft modding here http://www.xbox-scene.com/xbox-tutorials.php?p=151|374|375|#151
if you are connecting your XBOX straight up to a PC (no router) you need a crossover cable (usually a red cable)
yes you can load emulators, homebrew, mp3 and any video file type imaginable on to a DVD-R
my strong suggestion would be to get a chip and a 200GB HDDeven if you just use it for mp3 and videos its more than worth it.
welcome to XBOX homebrew Im sure you'll love it
PM me if ya need anymore help
Edit: Also you'll need bit torrent or IRC to get the homebrew
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