I've got a good one speaking of cheap Xbox's.... a few weeks back we were shopping in our local Sam's Club, and in the glass cabinet there was an "open box buy" XBox bundle. This was the XBox, 2 controllers, the factory MS DVD remote/dongle, and 2 crap games -- SegaGT and some other shit game. Total price -- $99.
The catch was, that the machine's drive supposedly didn't read game CD's properly. So I got the sales drone over, took at look at the machine... and sure enough, it was perfect. Still had the cling plastic over the buttons, and not as much as a scratch on the rest of the machine. So I took my chances and bought it.
Got it home, fired it up and popped one of the shit games in it.... and sure enough, absolutely NO problem reading the game. It played just fine.
So even having come with two completely useless games, I got the extra controller and the MS DVD remote, plus the console of course. Well worth the cash for the hardware alone.
This machine has since morphed into a modd'd box with an X2.3 Lite and a 120gb drive
If one were inclined to try a scam... I bet you could probably buy one of the Sam's Club bundles at full price. Open up the package, and take it back telling them it doesn't work properly. Within a couple of days I bet they'll put that sucker in the "open box" display cabinet, where you could always have a family member re-buy it for you at $99

Just a suggestion.... not saying to defraud the lovely Walton family and their billions.