A friend and I have been talking about building our own linux for the xbox, we have been planing to start with linux from scratch but we have searchd everywhere but can't find any information about how to make it work with the xbox, like how to make the .xbe files and make it work with the xbox chipset. anyone that could help us?

its not going to work the way you think. Your not going to run linux on top of the xbox kernel you will run it in place of it. Look into cromwell. You will either flash its bios to the board and run only linux. Or use it in its xbe form to run it much like pbl works.

Find xebian install it. Not full version the basic version. That pretty much gives you a stripped down 2.4 kernel. Straight cmdline no gui. You can build it from there. This would most likely be the best starting point because all the xbox specific work is already out the way. I have custom built this way before. Built alot of stuff from source. Far as I could get was 2.6.18 kernel. I got of couple boxes that been running for a few years stable like this. You can make a pretty nice little setup out of them.

Okay, had been plaing to run its xbe form.

okay.
Xebian don't come with gnome or KDE, does it support KDE och gnome? becuase I would like to use any of those istead of what Xebians runs as custom.