yes, if it's chipped and you run Xbox Media Player. Best to watch em anyway, as it streams bins from your pc. Also makes DivX / XviD look amazing quality on TV through RGB or s-video cable - much better than on PC monitor.
That's because TVs are so bloody unfocuses, unsharp and low quality to start with. Dont quite think you'll find a TV with a d.p. of 0.22 anytime soon and if you do, you might as well by a sports car with that kinda money.