I read somewhere that the xbox can only run .xbe at a time. I wanted to make some kind of miniscule process similar to a system process on win32 that can run in the background while another xbox program can run. This xbox program is an xport emulator.

If this isn't possible, is it possible to somehow freeze the xbox program (the xport emulator) and then run this other program, and then jump back into the same place in code of the xbox program (the xport emulator)?
I know in win32 you can get a program to retrieve the result of another program.. That would also work for what I'm trying to do... is this possible on xbox?

Dashes do that. They are programs which launch other programs.
You can study opendash source for example (made for openxdk).

But for very fast switching, it's better to use DPC's triggered by interrupts.
GPU can fire an interrupt each video frame for example. (see pbkit)

As xport released the sources of all his emulators, you could simply write an extra procedure and call it.
It will continue the original code after the call.

regards.